Federal Income Tax Filing for California Startups.

Yes, and most founders are surprised to learn they have obligations in two places at once. If your startup is incorporated in Delaware, which most VC-backed startups are, but operating in California, you file a federal corporate return (Form 1120) with the IRS and a state return (Form 100) with California's Franchise Tax Board. On top of that, California charges an $800 minimum franchise tax annually, regardless of whether your startup turned a profit. Missing either filing triggers penalties that compound quickly.

Everything your startup needs for annual tax compliance: federal corporate income tax return (Form 1120), California state income tax return, 1099 preparation and filing, Delaware Franchise Tax Report, payroll software setup (Gusto, Rippling, and others), a bookkeeping consultation, and unlimited tax support year-round. No hourly clock. No surprise invoices for one-off questions between January and April. One fee, fully covered.

The federal corporate tax rate for C-Corps is a flat 21% on net income. California adds its own corporate income tax at 8.84% of California-sourced net income, plus the $800 minimum franchise tax. Most early-stage startups operating at a loss pay only the $800 minimum to California, but the filing obligation exists regardless of profitability. What it costs to have someone handle the filing itself depends on the complexity of your situation. Our trusted CPA partner charges one flat annual fee, with no hourly billing and no binding contract, and can give you an exact number after a quick conversation.

Yes. If your startup is incorporated in Delaware, which the vast majority of VC-backed startups are, you owe Delaware an annual franchise tax even with zero operations or revenue there. Delaware uses two calculation methods (Authorized Shares Method and Assumed Par Value Capital Method), and the difference between them can be thousands of dollars. Most founders get hit with an inflated bill using the default method when the alternative method would cost a fraction of that. This is included in our trusted CPA partner's flat fee.

Significantly. Foreign founders trigger additional IRS reporting obligations, including Form 5472 if the startup has foreign ownership above 25%. Missing this form triggers an automatic $25,000 penalty per form, with more added the longer it goes unresolved. International subsidiaries add another layer of cross-border compliance. Our trusted CPA partner specifically supports foreign founders and companies with international subsidiaries, included in the same flat fee, no upcharge.

Federal corporate returns (Form 1120) are due March 15 for calendar-year C-Corps, with an automatic extension available to September 15. California's Form 100 is due April 15, also extendable. The Delaware Franchise Tax Report is due March 1. Miss the Delaware deadline and penalties start immediately. Miss California's franchise tax payment and interest compounds on top of the penalty. Our trusted CPA partner tracks all of these deadlines for you as part of the annual service.