#2016 EXTENSION FORM IRS PRO#

We do not require a corporation to file a tax return for a tax year if both of the following are true: Your first tax year is not subject to the minimum franchise tax.Īfter the first year, your tax is the larger of your California net income multiplied by the appropriate tax rate or the minimum franchise tax. To compute the tax for your corporation’s first tax year, multiply your California net income by the appropriate tax rate. Newly Incorporated or Qualified Corporations If you fail to close your corporation properly, the requirement to file tax returns and Statements of Information and to pay at least the minimum tax could run on indefinitely. If you cease business, you must file the necessary paperwork to properly end your corporation’s existence with the Secretary of State and the Franchise Tax Board. For the current tax year's annual threshold amount, go to ftb.ca.gov and search for doing business in California. 'Pass-through entities' means a partnership, an LLC treated as a partnership, or an S corporation.īefore 2011, doing business was defined as actively engaging in any transaction for the purpose of financial gain or profit.

#2016 EXTENSION FORM IRS PRO#

The entity’s California compensation exceeds either the annual threshold amount (annually adjusted for inflation) or 25 percent of the total compensation paid by the entity.įor the above tests, the sales, property, and payroll of the entity include their pro rata or distributive share of pass-through entities.

The entity’s California real property and tangible personal property exceeds either the annual threshold amount (annually adjusted for inflation) or 25 percent of their total real property and tangible personal property.

Sales include sales made by an agent or independent contractor of the entity.

The entity’s California sales exceed either the annual threshold amount (annually adjusted for inflation) or 25 percent of their total sales.

To be commercially domiciled in this state generally means that this state is the principal place from which the trade or business of the entity is directed or managed.

The entity is organized or commercially domiciled in this state.

The entity is actively engaging in any transaction for the purpose of financial gain or profit.

We require your California tax year to be the same as your federal tax year, unless we initiated or approved a different accounting period.ĭoing business - Beginning with the 2011 tax year, a business is considered to be doing business in California during the year if it meets one of these tests: Tax year - Calendar, fiscal, or short-period year used by the corporation to compute their net income. Contact the California Secretary of State (SOS) to incorporate or qualify your business at 91, or go to sos.ca.gov.Ĭalendar year - An accounting period of 12 months or less ending on the last day of December.įiscal year - An accounting period of 12 months or less ending on the last day of any month other than December.Īccounting period - Calendar, fiscal, or short-period year used by the corporation to compute their net income. It can make contracts, pay taxes, and is liable for debts. DefinitionsĬorporation - A legal entity that exists separately from the people who own, manage, control, and operate it. Water’s-Edge Filers - For information regarding filing a Water’s-Edge tax return in California, see Form 100W, California Corporation Franchise or Income Tax Return - Water’s‑Edge Filers.

Avoid unnecessary penalties and interest.

Form 100-ES, Bank and Corporation Estimated Tax Payment Voucher.Form 100S, California S Corporation Franchise or Income Tax Return.Form 100, California Corporation Franchise or Income Tax Return.This guide is intended to help you file your corporation’s first:

2016 extension form irs