4 ms·

It is impossible. He’s just repeating talking points he heard but does not understand.

• manigandham 9y ago
  What is impossible? The minimum franchise tax? Are you sure that you understand? https://www.ftb.ca.gov/businesses/faq/712.shtml https://www.ftb.ca.gov/businesses/faq/712.shtml >> Minimum tax is the amount you must pay the first quarter of each accounting period whether the corporation is active, operates at a loss or does not do business. The current minimum tax is $800.
  • abritinthebay 9y ago
    "taxed into Bankruptcy" If you're not making $800 then you don't have a business - you have a hobby.
    • manigandham 9y ago
      There's no number on the amount of money you have to earn to be a business. Corporate structures can be useful even if they don't directly earn money. Either way, yes it's just a cost of doing business in California, and so profits need to be greater than the cost for the business to be sustainable. Perhaps it's not a great description to say "taxed into bankruptcy" but it's no different than "did not meet costs and ended in bankruptcy", with the costs specifically being taxes.
      • abritinthebay 9y ago
        Sure, there is no minimum (tho it could be argued that $800 is the minimum tbh) but even if you only charge minumum wage ($11) that’s less than two weeks work. More likely the hourly equivalent will be a lot higher. A dog walker would make that in 4 days at worst. A week or two if they are casual ones. So to not make that it’s not the taxes that are killing your business.