franchise tax bFranchise tax board will withhold

3 1/3 % of the gross sales price no matter what your % in the deal with a partner if you don’t have an llc or corp. This recently happened to my “partner” in the deal. He refused to listen to me and paid the penalty. Withholding 3 1/3% of $395,000 was painful. (he deserved it for not trusting the guru).