Existing law imposes an annual minimum franchise tax of $800, except as provided, on every corporation incorporated in this state, qualified to transact intrastate business in this state, or doing business in this state. Existing law also imposes an annual tax in an amount equal to the minimum franchise tax on every limited partnership, limited liability partnership, and limited liability company doing business in this state, as specified.
This bill, for taxable years beginning on or after January 1, 2025, would exempt corporations that are microbusinesses, as specified, incorporated in this state from the minimum franchise tax. The bill would also exempt a limited partnership, limited liability partnership, and limited liability company that are microbusinesses, as specified, from the annual tax.
This bill would take effect immediately as a tax levy.