The $800 fee is a minimum tax for the year, not an arbitrary fee, it is credited against other taxes you owe. To that end, most businesses with employees or substantial sales won't owe anything extra. It is waived the first year in most cases, so it isn't a short term problem for new businesses. There are other business structures for a company besides an LLC if costs like the registered agent, the tax complexity, the minimum franchise tax are an obstacle.
So even if you have no income or a loss, you still have to pay $800 tax. That seems ridiculous. Many have said that the term "tax" is inappropriate and instead should be a fee (which can be tax deductable), but wait! There's more. There is also a LLC fee which is waived for <$250k revenue but increases there after. Note - all this taxation and fees is in addition to state income taxes. Experts also say that the "LLC Fee" should be called "LLC Tax". California has an absurd level of taxation for someone who wants to open "Hannah's Illustration & Painting LLC".
Given how it works in states like Nevada and Arizona ($50 flat one time fee, no minimum LLC tax or fees), California goes on a limb to intentionally make sure your little LLC suffers as much as possible: http://www.incorporatecalifornia.com/callctax.html
This minimum tax is not a separate fee owed on top of the corporate tax. For example California requires S corporations or LLCs electing to be taxed as an S corp to pay a 1.5% franchise tax on income, with a minimum tax of $800
