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Is my corporation subject to franchise tax or income tax?

Any corporation 'doing business' in California is subject to the minimum franchise tax even if it is not qualified with the California Secretary of State. 'Doing Business' means actively engaging in any transaction for the purpose of financial gain.

If you qualified with the Secretary of State, your corporation is subject to the franchise tax until you dissolve your corporation.

Your corporation is subject to corporate income tax if it is not qualified with the Secretary of State and is not 'doing business' in California BUT derives income from sources within California. For example, if your corporation is a limited partner in a limited partnership doing business in California, your corporation would be subject to corporate income tax. Unincorporated associations are also subject to corporation income tax.