Minimum franchise tax: annual tax: exemption.

Existing law generally imposes a 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, and an annual tax in an amount equal to the minimum franchise tax on every limited partnership, limited liability partnership, and limited liability company registered, qualified to transact business, or doing business in this state, as specified. Existing law exempts a corporation from payment of minimum franchise tax in its first taxable year. This bill would exempt from the minimum franchise tax every qualified new corporation incorporated or qualified to do business in this state on or after January 1, 2015, for its first 5 consecutive taxable years. This bill would also exempt from the annual tax every foreign or domestic limited partnership, limited liability partnership, and limited liability company that files its organizing document, or if a foreign entity its registration document, with the Secretary of State on or after January 1, 2015, as specified, for its first 5 consecutive taxable years. This bill would take effect immediately as a tax levy.