Posted by Carey_PA on December 19, 2000 at 17:50:11:
David,
Now let me assure you that I am NOT an accountant but I use to work for one and I swear that I heard them say that the tax was .012 and NOT 12%…heck it may have even been .0012 but nonetheless it’s still a dang gone tax…
CAREY
$800 minimum franchise tax in CA . . . - Posted by George
Posted by George on December 19, 2000 at 13:39:27:
although there is no minimum franchise tax required in the first two years of corporate opeartion, the tax board tells me I have to prepay $800 in the second year for the third year.
Anybody know if this is correct?
I guess they refund the money if you dissolve before the third year.
I suppose this is okay, I just get a little fearful when the government holds money in trust, so to speak.
George
You think you have it bad… - Posted by David Krulac
Posted by David Krulac on December 19, 2000 at 16:09:57:
in Pennsylvania, they have a Capital Stock Tax. There’s a complicated formula but basically, they take your profit and capitalize it at 10% for 5 years to figure out the value of the company. So if you make $100,000 in your corporation, then the value of the corporation is $2million and you pay tax on that value for five years.
The only problem that it is unfair to a real estate corporation where your sold assets may be the whole corporation. BTW the tax is 11.99%
Re: $800 minimum franchise tax in CA . . . - Posted by William Bronchick
Posted by William Bronchick on December 19, 2000 at 15:33:49:
It is not “in trust” - it is minimum. This means that even if you make no money, you still pay the tax. If you would otherwise owe tax, you are credited for the $800.
Re: You think you have it bad… - Posted by William Bronchick
Posted by William Bronchick on December 20, 2000 at 17:54:53:
But look on the bnght side -
You have zero property value growth and the Winters are miserable.
