Quote Quoting weedkill3
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My question involves business law in the state of: CALIFORNIA

I understand that there is an $800 annual fee if you have an LLC in CA.

What about S-Corps?
LLCs, S-corporations, and C-corporations all must pay the annual franchise tax, which is a minimum of $800. The California Franchise Tax Board (FTB) explains that here: summary of California rules for S-corporations.

Quote Quoting weedkill3
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Do I need to file under CA or can I file in other States? This business will have one member or S/H. Just starting, so very little revenue. If i can is it worth filing out of state?
I’m not sure whether you are referring to filing tax returns or filing to set up the LLC/corporation. If a corporation or LLC derives income from California then it (and possibly the owners as well) will need to file and pay income tax there and may be subject to other taxes in that state too, depending on the details of the business.

A corporation (whether S-corp or C-corp) or LLC that is created or organized in California must pay the franchise tax. A corporation or LLC that is created and organized in some place outside California but that does business within California must register in the state as a foreign LLC. Foreign corporations and LLCs in the state must also pay the $800 franchise tax. Most other states have similar rules. As a result, it is rarely worthwhile for a small, closely held businesses to organize in some state in which it does not do business because by doing that they subject themselves to additional fees and taxes in the state where they organize and they still also have to pay the taxes and fees in every state where they do business, too.

Sole proprietors operating in California are subject to income tax in that state but not the franchise tax. Sole proprietors do not, however, get the benefit of limited liability protection that corporations and LLCs provide. For most small businesses owned by one person and that has no employees the benefit of the limited liability protection is, well, pretty limited. No matter how the business is organized you are always liable to others for the harm you cause through your own negligence. And most lenders (including suppliers that extend lines of credit) as well as landlords, etc, of a small LLC or corporation will have the owner(s) execute personal guarantees of the debt of the business entity.