Franchise Taxes
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FRANCHISE TAXES

Corporations in California pay an annual franchise fee of $800 for the privilege of doing business in the State. However, associations that are nonprofit mutual-benefit corporations qualify for an exemption from that annual fee under Revenue & Tax Code §23701t if they file for the exemption. A list of tax-exempt organizations can be found on the Franchise Tax Board's website.

In some instances, the exemption may be retroactive, resulting in a refund of prior payments. If taxable income is less than $100, a California corporate return is not necessary.

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