Minimum annual tax: exemption.

Existing law 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 a minimum annual 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 that incorporates or qualifies to do business in this state from the payment of the minimum franchise tax in its first taxable year. This bill would, for taxable years beginning on or after January 1, 2019, exempt a limited partnership that is a new limited partnership and a limited liability company that is a new limited liability company in taxable years beginning on or after January 1, 2019, and is a small business in its first year from payment of the minimum annual tax for its first taxable year. This bill would take effect immediately as a tax levy.