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  • Category Archives Tax
  • California Minimum Business Fees and First Year Exemption

    The question is: do you have to pay any California Business License fees?
    If you searched the ca.gov site, and you may find the first year exemption,
    http://www.taxes.ca.gov/estpaybus.shtml
    it says: “Note: As of January 1, 2000, newly incorporated or qualified corporations are exempt from the minimum franchise tax for their first year of business.”

    So it seems that you don’t have to pay the $800 per year business licensing fees.
    However this is a English trap, this should mean: the min tax of $800 does not apply, HOWEVER the tax has to be paid based on your business profit.



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