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How to Start an S Corporation in California: Easy Steps for New Business Owners

California S Corporations do not pay federal income taxes. You and the other owners keep all the money your business made or lost and pay taxes on it individually. Unique criteria, one kind of stock, and less than one hundred shareholders are necessary for a S corporation. A yearly franchise fee of $800 is due regardless of whether your business is profitable. The state may not demand this fee during your first year.

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