6 ms·

This. Forming a company in CA is stupid, no other state has this insane tax.

• gamblor956 9y ago
  Most states have minimum franchise taxes. CA charges on the higher side because CA offers the biggest market. In effect, CA is taking advantage of the libertarian free market principle of supply and demand. They have the largest supply of potential customers, and there is a large demand of businesses wanting access to those customers, and the minimum franchise fee reflects that. You're free to set up shop in South Dakota (no minimum) and see just how many customers you find there...
  • asdsa5325 9y ago
    You can incorporate in any state, it doesn't matter where your customers are. Most CA companies (and most companies, across all states) form in Delaware for legal reasons. CA is not a popular place to incorporate in.
    • s73v3r_ 9y ago
      But if they're located in CA, which many of them are, they still have to pay the $800.