> California literally says "for the privilege of doing business" in the state. I'll start out by saying that I think that an $800 minimum is waaaay too high.

> California literally says "for the privilege of doing business" in the state. I'll start out by saying that I think that an $800 minimum is waaaay too high. But I continue by pointing out that it's not for "doing business," it's a tax for having the legal fiction of limited liability[0] enforced by the state. You only pay the minimum tax if you are a corporate entity (Inc or LLC). That's a subtle, but in my opinion important, difference. If you're willing to transact business in your own name as your own personal liability, the state--at least for this tax; I'm not conversant with the full roster of non-corporate business taxes in California--doesn't charge you for the privilege. If you want the shield of your personal assets separate from your corporate persona then, yes, the state charges you for that privilege. Every state has some sort of fee or tax. Some are very small (Wyoming is only $30 or $40, I believe) while some, like California's, are quite large on the minimum end. 0 - https://www.ftb.ca.gov/businesses/faq/712.shtml https://www.ftb.ca.gov/businesses/faq/712.shtml