If you do not conduct business in the United States, a California corporation (not an LLC, with registered capital, and publicly traded) is not subject to income tax, but only to franchise tax, subject to the receipt of the government's tax receipt. The address provided at the time of registration must be accurate. California limited is required to pay the annual franchise tax by March 1 of each year, while LLC (unregistered capital, non-public) is required to pay the annual franchise tax by June 1 of each year. The minimum franchise tax is $800. If a company incorporated in California does not do business in the United States and its shareholders, directors and officers are not U.S. citizens, the company has the same characteristics as an offshore company.

If a business is operating in the United States, a California company (not an LLC, with registered capital, and publicly traded) is subject to sales tax and franchise tax, depending on the tax receipt received from the government. The address provided at the time of registration must be accurate. California limited is required to pay the annual franchise tax by March 1 of each year, while LLC (unregistered capital, non-public) is required to pay the annual franchise tax by June 1 of each year.