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Ways to avoid California's franchise tax

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I want to look at the cheapest way to form a company in California. I know about a DBA, but I'd rather look at forming a LLC or possibly a Corp. I looked into creating a Delaware LLC to avoid California's $800 franchise tax. From all my research, even if the company only does online business, if the operations and employees are located in California, you are still required to pay that tax. Does anyone have any information on this or any other options to form a company in California?

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If you're physically living in California and you make money, you have to pay California tax. Talk to your accountant and your lawyer.

Thanks for the straight answer Tom

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