I have a customer that created a California S-Corp in January 2017. The corporation has never been "active" and as of February 2018, he is currently in the process of dissolving the corporation.
First question:
My understanding is that California does not impose the $800 min franchise fee for the 1st year (2017) of the corporation's existence. But does the corporation still have a *filing requirement*? It had zero activity so the tax return would be pretty much all zeros. I'm unclear if I need to file a 1120S & 100S return. But I don't want to run afoul of the failure to file penalty of $195/mo. Any thoughts?
Second question:
If the corporation is dissolved in the 1st quarter of 2018, is it still liable for the $800 min franchise fee? I think the answer is yes, but I was wondering if there is any way to get out of paying it.
Thank you.
Regards,
Bryan