What California Form 100 Is For
California Form 100 (2011) is the required state return for corporations that must report income, deductions, adjustments, and tax liability to the Franchise Tax Board (FTB). It parallels the federal Form 1120 but applies California-specific rules and rates. The form calculates both the franchise tax on income and the mandatory minimum franchise tax owed by most corporations.
Corporations incorporated, qualified, or doing business in California must file this return. It also applies to entities taxed as corporations, including certain LLCs, banks, financial corporations, REITs, RICs, REMICs, Massachusetts trusts, and homeowners’ associations with taxable income. For 2011, the return reflects state conformity rules and tax rates in effect for that year.
When You’d Use California Form 100
You must file Form 100 for any taxable year in which the corporation was incorporated, registered, or doing business in California. This includes corporations with no income, losses, or minimal activity, unless they qualify for a narrow exemption such as the first-year minimum tax waiver.
You’d also use Form 100 if filing late or under extension. California grants an automatic seven-month extension to file, but this does not extend the deadline to pay tax. If you discover an error after filing, you must use Form 100X to amend your corporation’s 2011 return.
Key Rules or Details for 2011
Minimum Franchise Tax
Most corporations owe at least the $800 minimum franchise tax, even if they operated at a loss or were inactive. The exemption for newly formed or qualified corporations applies only to the first taxable year.
Filing Deadlines
For calendar-year filers, the 2011 return was due April 15, 2012 (or the next business day if a weekend or holiday). Fiscal-year filers follow the rule requiring filing by the 15th day of the fourth month after year-end. Estimated tax payments generally followed the 30-40-0-30 schedule used for 2011.
Income Calculation
Corporations may:
- Start with federal ordinary income and adjust for California differences
- Use the California computation method if they keep separate state books
California’s rules differ from federal law in depreciation, capital gains, and certain deductions, requiring careful adjustments and supporting schedules.
Doing Business in California
Meeting California thresholds for property, payroll, or sales triggers a filing requirement, even for out-of-state corporations. Exceeding the dollar or 25% factor thresholds means the corporation is doing business and must file Form 100.
Step-by-Step (High Level)
Step 1: Confirm Filing Requirements
Check whether the corporation was incorporated, registered, or doing business in California during 2011. If so, a 2011 Form 100 is required.
Step 2: Gather Federal and State Records
You will need the federal Form 1120, financial statements, depreciation reports, and prior-year carryover schedules. Much of Form 100 depends on reconciling California income with federal amounts.
Step 3: Choose Your Income Calculation Method
Select either the federal reconciliation method or the California computation method. Most corporations start with federal ordinary income and adjust it to determine California taxable income.
Step 4: Complete the Entity Information
Enter the corporation’s legal name, California corporation number, FEIN, address, taxable year, and any checkboxes related to final returns or elections.
Step 5: Calculate Net Income and Tax
Make all California additions and deductions, compute net income for apportionment if applicable, and apply the 8.84% tax rate used for 2011. Compare the result with the $800 minimum and pay whichever is greater.
Step 6: Report Payments and Credits
Include estimated payments, extension payments, and withholding. Determine whether you owe additional tax or are due a refund.
Step 7: Attach Schedules and File
Schedules A, F, R, D, L/M-1/M-2, and credit schedules may be required. Include a copy of your federal return. File electronically or mail the paper return, signed by an authorized officer.
The IRS form page is available at: https://www.ftb.ca.gov/forms/
Common Mistakes and How to Avoid Them
- Skipping the $800 minimum tax
Applies even when the corporation has no income; verify whether the first-year exemption applies. - Assuming extension covers payment
The seven-month extension covers filing only. Pay all tax by the original due date. - Incorrect federal-to-California adjustments
Review depreciation, capital gains, and NOL rules to avoid misstatements. - Missing required schedules
Omitting Schedule R, federal attachments, or credit schedules can delay processing. - Not reporting IRS changes
File Form 100X within six months of a federal change notice.
What Happens After You File
The FTB reviews the return and may accept it as filed, issue a refund, or send a notice proposing changes. Paper returns generally take six to eight weeks to process, while e-filed returns process faster. Refunds can be issued by check or direct deposit.
If discrepancies arise, the FTB may issue a notice of proposed assessment. Respond promptly to avoid further penalties. If the corporation disagrees with the adjustment, it may file a protest within the allowed timeframe. Keep all corporate tax records for at least four years, as the FTB may audit any return within that period.
Failure to file or pay may lead to penalties, interest, and possible suspension by the Secretary of State. A suspended corporation cannot legally operate and must file all outstanding returns and pay all amounts due to regain good standing.
FAQs
Do I need to file Form 100 if my corporation had no 2011 income?
Yes. You must file if the corporation was incorporated, qualified, or doing business in California during the year. The minimum franchise tax still applies unless an exemption covers your first taxable year.
Does a newly formed corporation owe the $800 minimum tax?
Not for the first taxable year. The exemption applies only to corporations formed or qualified in 2011. In the second year and beyond, the $800 minimum tax applies.
Can I get extra time to file my 2011 Form 100?
Yes. California provides an automatic seven-month extension to file, but all tax must be paid by the original due date. Extensions do not delay payment obligations.
How does California apportion income for multistate corporations?
Corporations operating both inside and outside California generally use sales, property, and payroll factors to determine the California share of income. Complete Schedule R to calculate the apportionment percentage.
What should I do if the IRS changes my federal return?
You must file Form 100X within six months of filing your amended federal return or receiving the IRS determination. Attach all supporting federal documents to avoid delays or penalties.
