CA Tax Return Preparer

[Taxizen]

The client just set up the foreign corporation in CA in 2006 but the plan was changed so did not do anything.

But the state board required the company to file the information return but the company didn't file it since it thought it didn't have to do it because there were no business activity.

The state also requires the company to pay couple of hundred dollars for the franchise tax a year when the company files the return.

Do you think the company has to pay this fee in this situation?

Any CA return preparer's input would be appreciated.

[jainen]

>>The state also requires the company to pay couple of hundred dollars for the franchise tax a year<<

$800, same as everyone else. If he didn't know about this, he has only himself to blame. It is a minimum tax for the right to do business in California, whether or not there is actually any business activity. Yes, he is required to pay it. However, without more information I couldn't say what means the FTB has to enforce collection.

[SFBOB]

I suggest you call 1-916-845-7057. This is the practioner Hot Line. Call about 3:00 PM PST and ask for an experienced Corporation representative. Use this source to discuss a potential new client; then use the information to work out your clients problem. As the prior post stated; there is a $800.00 annual fee plus the Original fee to the California Secretary Of State $800.00. The secretary of state will issue the corporation number. Good Luck Bob