Minimum franchise tax: annual tax: exemption: veterans small businesses.

Existing law imposes an annual minimum franchise tax, 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 exempts a corporation that incorporates or qualifies to do business in this state from the payment of the minimum franchise tax in its first taxable year. Existing law imposes an annual tax in an amount equal to the minimum franchise tax on every limited liability company doing business in this state. In addition, existing law requires every limited liability company if the articles of organization have been accepted by, or a certificate of registration has been issued by, the Secretary of State to pay an annual tax in an amount equal to the minimum franchise tax. This bill would, for taxable years beginning on or after January 1, 2015, and before January 1, 2018, reduce that minimum franchise tax for a corporation and that annual tax for a limited liability company, as provided, that is a new veteran-owned small business, as defined, and would eliminate the tax if the business operates at a loss or ceases operation. This bill would take effect immediately as a tax levy.