Hi everyone,

I just received a bill for $800, which is the minimum franchise tax in California for businesses considered to be doing business there. My understanding was that this tax applies to businesses with a minimum revenue threshold of $500,000. However, my revenue is significantly lower than that, and I use Amazon FBA for my sales.

Has anyone else using Amazon FBA encountered this issue? I find it hard to believe that small sellers, such as a bookseller who sold 15 books to California customers, would need to pay $800 just because their inventory was stored in a California warehouse. Given that Amazon USA has over 2,000,000 sellers, it seems unlikely that all of them would be subject to this tax.

If you have experience with this or know how to handle it, could you please provide some advice? I'm looking for insights into whether this tax is indeed applicable in my situation and how other small sellers are managing it.

Thanks in advance for your help!