CA Mutual Benefit Corp FTB forms?


R

Robert M. Gary

I have a question about tax filing.

I have a Mutual Benefit Corp in the state of California. The
Corp has two assets. One a bank account, two an airplane. I
put money into it to cover the costs of the plane. The plane
does not generate any revenue whatsoever. The purpose of
the corp is soley to hold the airplane. I keep getting
nastygrams from the state saying I need to file a tax form
at the end of the year or incur a percentage penality (I
believe anything multiplied by zero is zero though). Does
anyone know what for a Mutual Benefit Corp uses to satisfy
the state?
 
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A

A.G. Kalman

I have a question about tax filing.
I have a Mutual Benefit Corp in the state of California. The
Corp has two assets. One a bank account, two an airplane. I
put money into it to cover the costs of the plane. The plane
does not generate any revenue whatsoever. The purpose of
the corp is soley to hold the airplane. I keep getting
nastygrams from the state saying I need to file a tax form
at the end of the year or incur a percentage penality (I
believe anything multiplied by zero is zero though). Does
anyone know what for a Mutual Benefit Corp uses to satisfy
the state?
Last time I checked, Mutual Benefit Corp. were subject to CA
franchise tax requirements. That requirement enacts a minimum
franchise tax of $800. The Corp. owes the $800 regardless of
income.

Alan
http://taxtopics.net
 
S

Stuart O. Bronstein

Last time I checked, Mutual Benefit Corp. were subject to CA
franchise tax requirements. That requirement enacts a minimum
franchise tax of $800. The Corp. owes the $800 regardless of
income.
I believe a mutual benefit corporation is a type of
nonprofit corporation. If the proper forms were filed and
approved relating to nonprofit status, no minimum tax is due
on a nonprofit.

But forms must still be filed.

Stu
 
A

A.G. Kalman

I believe a mutual benefit corporation is a type of
nonprofit corporation. If the proper forms were filed and
approved relating to nonprofit status, no minimum tax is due
on a nonprofit.

But forms must still be filed.
I'm a little outside my area of expertise...but..
Here are the 3 types of corporations from the Sec'y of State:

A. A corporation organized primarily for charitable purposes
and which plans to obtain state tax exempt status under
Section 23701d of the Revenue and Taxation Code and/or
federal tax exempt status under Section 501(c)(3) of the
Internal Revenue Code or organized to act as a civic league
or a social welfare organization and which plans to obtain
state tax exempt status under Section 23701f of the Revenue
and Taxation Code and/or federal tax exempt status under
Section 501(c)(4) of the Internal Revenue Code is a
nonprofit PUBLIC BENEFIT corporation.

B. A corporation for other than religious, charitable, civic
league or social welfare purposes and planning to obtain tax
exempt status under provisions other than Sections 23701d,
23701f, 501(c)(4) or not planning to be tax exempt at all is
a nonprofit MUTUAL BENEFIT corporation.

C. A corporation organized to operate a church or to be
otherwise structured for primarily religious purposes is a
nonprofit RELIGIOUS corporation.

Note that the corp. in Paragrpah B would not be exempt from
the $800 charge.

Alan
http://taxtopics.net
 
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S

Stuart O. Bronstein

B. A corporation for other than religious, charitable, civic
league or social welfare purposes and planning to obtain tax
exempt status under provisions other than Sections 23701d,
23701f, 501(c)(4) or not planning to be tax exempt at all is
a nonprofit MUTUAL BENEFIT corporation.

Note that the corp. in Paragrpah B would not be exempt from
the $800 charge.
Thanks. I wasn't aware of that. I've only worked with
501(c)(3) nonprofits.

Stu
 

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