ca franchise tax board 2016 extension form

The annual tax for S corporations is the greater of 1.5% of the corporation's net income or $800. Filing Requirements and Related Questions What is the tax rate for S corporations? Note: To incorporate your business or qualify your foreign corporation to do business in California, contact the Secretary of State, Business Filings at 1-91, or visit sos.ca.gov. The corporation can elect to remain a California C corporation, by timely filing Form 3560 (S Corporation Election or Termination/Revocation). When a corporation elects federal S corporation status it automatically becomes an S corporation for California. A small business corporation elects federal S corporation status by filing federal Form 2553 (Election By a Small Business Corporation) with the Internal Revenue Service. S Corporation Elections Making the federal S corporation electionĬertain requirements must be met before a small business corporation can elect federal S corporation status.

The computation of tax on built-in gains and excess passive income.įor more information on California S corporations, please see Form 100S Booklet (California S Corporation Franchise or Income Tax Return Booklet).

The S corporation is allowed tax credits and net operating losses.

However, the major difference is that for California purposes, an S corporation's income is taxable at the corporate level and the pass-through of its income to the shareholders is also taxable on their returns.Ĭalifornia law is also different in the following areas: Generally, California law follows federal law in computing the S corporation's income.

Limited Liability Companies Treated as S CorporationsĪn S corporation is similar to a partnership, in that the taxable income or loss of the S corporation flows through to the shareholders that report the income or loss on their own returns.

Foreign S Corporations - Conventions and Trade Shows.Doing Business in California and Other States.Filing Requirements and Related Questions.

Ca franchise tax board 2016 extension form