R.

Poojitha

Franchise Tax Compliance

Answer 1
Query: Difference between franchise tax and Income Tax
Reply:
INCOME TAX:
Corporate income taxes are imposed on a company's profit -- its net income. If the company
makes no profit, it may have no corporate income tax liability at all. In general, only
corporations are required to pay corporate income taxes. Sole proprietorships, partnerships
and limited liability companies, on the other hand, don't pay income taxes themselves; their
profits pass directly to their owners, who pay income taxes on them.

Franchise Tax:

Franchise taxes are fees that companies must pay for the privilege of doing business in a
particular state or city. (Despite the name, they don't apply just to franchises.) Franchise taxes
are not based on profit, meaning that even companies that lose money or only break even
must pay them. These taxes may be a flat fee or may be based on a company's net worth or
its gross receipts -- the amount of business that a company "does" in the state or city
imposing the tax. Different states impose franchise taxes on different kinds of companies, but
they typically aren't limited to corporations.

Answer 2

Activities that can’t be undertaken when business is forfeited by California Franchise

Tax Board:

 Transact any business in California.

 File a lawsuit in California.
 File an appeal in California.
 Sell property in California.
 Any third party can dishonor contracts and you cannot do anything about it

Answer 3

Consequences of performing work even after suspension or Forfeiture:

If we operate even after suspension then we need to pay penalty USD of 2000 and we will not
be getting refunds, amend refunds or protest an assessment.
R.Poojitha

Answer 4

Original Due Date : The original due date to file California Corporation Franchise or Income Tax Return
(Form 100), is the 15th day of the fourth month after the close of the C Corporation's taxable year,
which for calendar year corporations is April 15th.

The extended due date to file Form 100, California Corporation Franchise or Income Tax Return, is the
15th day of the 11th month after the close of the C Corporation’s taxable year. For C Corporations
operating under a calendar year, the 2020 taxable year extended due date is November 15, 2021.

Answer 5

To revive your business, you must file one of the following forms after filing returns and payment

 Application for Certificate of Revivor – Corporation (FTB 3557 BC)

 Application for Certificate of Revivor – Limited Liability Company (FTB 3557 LLC)

Mailing Address:

Business Entity Correspondence

Franchise Tax Board
PO Box 942857
Sacramento CA 94257-4040

EXERCISE 2

PART 1

Find in the attached business entity search.

https://drive.google.com/file/d/1di_bEgaHentwCSy2sWLEh4Z3ITAoounv/view?usp=share_link

Part 2

Find in the attached link for tax payment.

https://drive.google.com/file/d/16xxJ1J86Y9pclEJXrjSTkCkdEuxPVQof/view?usp=share_link