Annual tax: limited liability company small business.

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. This bill, for taxable years beginning on or after January 1, 2020, and before January 1, 2025, would reduce that annual tax to $400 for a limited liability company that is a small business, which is defined as a business entity with gross receipts of $250,000 or less, during the 2 taxable years after the date on which the articles of organization have been accepted or a certificate of registration has been issued. This bill would take effect immediately as a tax levy.