The California Minimum Corporate Franchise Tax Waiver for New LLCs Has Not Been Extended for 2024

Written By Ellie Rotvold

January 3, 2024

While newly formed California corporations have long enjoyed their “first year free” from the $800 minimum corporate franchise tax, limited liability companies (LLCs) were granted a waiver of that tax only for LLCs formed in 2021, 2022, and 2023.  That waiver has not been extended.  Therefore, if you are forming a new company in California:

  • Corporations do not have to pay the minimum corporate franchise tax of $800 for their first year of existence, but

  • Limited liability companies (LLCs) need to pay the minimum corporate franchise tax of $800 for their first year of existence and that amount is no later than the 15th day of the fourth month after formation.

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Ellie Rotvold
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