C Corporations

C Corporations in California

C corporations in California must file with both the state (Franchise Tax Board and Secretary of State) and the federal government (Internal Revenue Service). The required filings include annual tax returns, a yearly Statement of Information, and payroll tax forms if the corporation has employees.

Annual State Filings (California)

• Form 100: Corporation Franchise or Income Tax Return
  • What it is: All California C corporations must file this annual return to report their income, gains, losses, and deductions.
  • Due date: Generally, the 15th day of the fourth month after the close of the corporation’s taxable year.
• Minimum franchise tax
  • What it is: An annual minimum tax of $800, which must be paid to the Franchise Tax Board (FTB). This is required regardless of whether the corporation has any income, is inactive, or operates at a loss.
  • First-year exemption: Newly incorporated or qualified corporations are exempt from the minimum franchise tax for their first year.
• Statement of Information (Form SI-550)
  • What it is: This report updates the California Secretary of State on the corporation’s officers, directors, and registered agent.
  • Due date: Must be filed initially within 90 days of incorporation, and annually thereafter within the corporation’s registration month (or up to five months prior).

Annual Federal Filings

• Form 1120: U.S. Corporation Income Tax Return
  • What it is: The mandatory annual income tax return that C corporations file with the IRS.
  • E-filing: Required if a C corporation files 10 or more returns of any type in a calendar year.
  • Due date: Generally, the 15th day of the fourth month after the end of the corporation’s tax year. Some exceptions apply.

Other Potential Filings

• Payroll tax filings (state and federal): If the corporation has employees, it must register with the California Employment Development Department (EDD) for state payroll taxes, and file federal employment tax returns with the IRS.
• Local business licenses: Depending on the corporation’s location and business type, it may need to register with and file annual renewals with the appropriate city or county government.
• Franchise tax apportionment: Corporations that do business in California and other states must file Schedule R with the FTB to allocate income properly.
• Maintaining internal records: The corporation must maintain internal documents, such as corporate bylaws and minutes from shareholder and board meetings, to remain in good legal standing.

Disclaimer

This is a general overview of the filings for C corporations in California. Specific tax situations can vary significantly. You should always consult with a qualified tax professional or legal advisor for personalized advice.