Business FinancesQuestion 1157 of 1605

The California minimum franchise tax that most corporations must pay to the Franchise Tax Board each year is:

a.$8,000
b.$800
c.$1,000
d.$25

Explanation

California imposes an $800 minimum franchise tax on most corporations and LLCs doing business in the state, payable annually to the Franchise Tax Board regardless of profit (with a limited first-year exemption for certain new corporations).

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