Illustration of closing a California business entity — closed office door, CA flag, final tax forms
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Close California Business Entity 2026: FTB + SOS Guide

BySW Accounting admin

How do I close a California business entity so the $800 franchise tax stops? You must complete two parallel filings — a final tax return with the Franchise Tax Board (FTB) and a dissolution, surrender, or cancellation with the Secretary of State (SOS) — within 12 months. Missing either one keeps the entity legally alive…