According to the secretary of state:
Registration of a limited liability company (LLC) with the California Secretary of State (SOS) will obligate an LLC that is not taxed as a corporation to pay to the Franchise Tax Board (FTB) an annual minimum tax of $800.00 and a fee based on the annual total income of the entity. The tax and fee are required to be paid for the taxable year of registration and each taxable year, or part thereof, until a Certificate of Cancellation is filed with the SOS. (Rev. and Tax. Code §§ 17941 and 17942.)
Now Im wondering, as a freelance software developer if its possible to avoid this tax somehow (legally of course, I realize that simply not paying it is technically an option :).
Since my clients are remote and my work is in software for entities around the states do I have any legal leg to stand on to say, incorporate in another state which has lower annual LLC taxes? Since Im living in CA and doing the work here I take it thats a no.