What Form 100S (2015) Is For
Form 100S (2015) is the California Corporation Franchise or income tax return used by an S corporation to report income taxes to the California Franchise Tax Board for the applicable tax year. Although an S corporation is treated as a pass-through entity for federal purposes, California law imposes a franchise tax at the corporate level.
This form title and form number apply to eligible entities conducting business in California and fall under the authority of the Franchise Tax Board.
When You’d Use Form 100S (2015)
S corporations file this return when California reporting requirements apply during the filing period.
- Annual Franchise Tax Filing: An S corporation must file this return when it earns income or conducts business activities in California during the tax year.
- Pass-through treatment with state taxation: Although income passes through to shareholders for federal purposes, California requires the S corporation to report net income and pay income taxes at the corporate level.
- Amended or corrected filings: An S corporation must file an amended return when changes to amounts reported for federal purposes affect California tax calculations.
- Short or partial tax years: This return is required when the filing period covers fewer than twelve months due to formation, dissolution, or reorganization.
- First-year or exemption situations: A small business operating as an S corporation may still be required to file, even when it qualifies for relief from the minimum tax.
Key Rules or Details for 2015
California law establishes specific rules governing how S corporations calculate and report their franchise tax obligations.
- Applicable tax rates: An S corporation is subject to California Franchise Tax at established tax rates that are applied to net income for the tax year.
- Minimum franchise tax requirement: Most S corporations are required to pay the $800 minimum tax, unless an exemption applies under California law.
- Legal authority and conformity rules: Filing requirements are governed by the California Revenue and Taxation Code, with adjustments made for differences from the Internal Revenue Code.
- Entity classification treatment: An S corporation differs from a C corporation for federal purposes, but California continues to impose tax at the corporate level.
- Apportionment considerations: Corporations conducting multistate operations must comply with jurisdictional reporting code requirements and complete related schedules as applicable.
Step-by-Step (High Level)
S corporations should follow a structured process to complete the return accurately and comply with California filing requirements.
- Gather required records: The corporation should collect financial statements, Schedule K data, Schedule D information, prior tax returns, and documentation related to tax payments and extension payments.
- Complete entity identification: The filer must enter the legal name, Employer Identification Number, and registration details on file with the California Secretary of State to ensure consistency with California Form 100 records.
- Report income and adjustments: Ordinary business income is reported and adjusted to reflect California tax law differences from federal purposes reporting.
- Apply credits and payments: Eligible credits, such as Form FTB 3805Q, are applied, along with estimated or prior tax payments, to determine remaining tax liabilities.
- Submit the return by the deadline: The completed return must be filed by March 15 for calendar-year filers, regardless of whether an extension is requested.
Common Mistakes and How to Avoid Them
Most filing errors result from a misunderstanding of California-specific filing rules or the misapplication of federal standards.
- Using the wrong form: Corporations should confirm they are not required to file Form 100 or Form 100W instead of this return, based on their entity classification.
- Misapplying federal tax law: Corporations should follow California Franchise Tax rules rather than relying solely on the Internal Revenue Code for reporting purposes.
- Omitting required schedules: Filers should attach all related schedules to avoid processing delays or notices from the Tax Department.
- Incorrect payment timing: Corporations should submit tax payments by the original due date, even when an extension is granted, to avoid penalties.
- Reporting unrelated taxes: Corporations should not include sales and use tax, use tax, or sales tax year information on this return.
What Happens After You File
After Form 100S (2015) is submitted, the California Franchise Tax Board reviews the return for accuracy and completeness. The Tax Board verifies calculations, confirms schedules, and applies tax payments to the account. If discrepancies are identified, the Tax Department may issue a written notice requesting clarification or additional documentation.
Once processing is complete, any refund due is issued by direct deposit or paper check, depending on the election made at the time of filing.
FAQs
What is the relationship between Form 100S and Form 1040 for shareholders?
Shareholders of an S corporation use Schedule K-1 from Form 100S to report their share of income on their personal Form 1040, which may include adjustments for California income.
Do I need to make quarterly estimated taxes for my California S corporation?
Yes, corporations expecting to owe more than $500 in tax must make quarterly estimated tax payments to avoid underpayment penalties.
Does forming an S corporation provide liability protection for shareholders?
Yes, forming a Subchapter S corporation offers liability protection similar to that of a C corporation or a limited liability company (LLC), shielding shareholders from personal responsibility for business debts.
What documents should be maintained with tax records when filing Form 100S?
Corporations should retain tax records, including Articles of Incorporation, stock certificates, the operating agreement or management structure, and any prior tax filings.
Can I view my account to track California-related tax matters?
No, your account only reflects federal tax data; California business taxes must be tracked through the Franchise Tax Board or ProConnect Tax systems.
