Does an S-Corp (Pass through entity) pay CA state tax?

Yes, Under California law, the S corporation is subject to a 1.5 percent tax on its net income and is a conduit similar to a partnership. On the other hand, The items of income, deductions, and credits "flow down" from the S corporation to each shareholder through the Schedule K-1, Shareholder's Share of Income, Deductions, Credits, etc. Each shareholder is responsible for paying taxes on their pro rata share of the S corporation’s items of income, deductions, and credits. However, for these types of questions, you are better advised to contact your CPA . I can recommend a good CPA if you do not have one.

I agree with Ms. Ghassemian. Under California law, the S corporation is subject to a 1.5 percent tax on its net income and is a conduit similar to a partnership. Additionally, S corporations that are corporations or LLCs under civil law corporations must pay the annual $800 minimum franchise tax. You should hire a good CPA for further assistance.

Both attorneys have provided you with great advise. A good CPA will help you with this matter. Best regards.