Taxation: corporations: minimum franchise tax: limited liability companies: annual tax.

The Corporation Tax Law imposes a tax according to or measured by net income, computed at a specified rate upon the basis of the net income for that taxable year, on every corporation, except as provided. Existing law, generally, also 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, for taxable years beginning before January 1, 2018, a corporation and a limited liability company that are small businesses solely owned by a deployed member of the United States Armed Forces from paying the minimum franchise tax or the annual tax for any taxable year the owner is deployed and the limited liability company operates at a loss or ceases operation. This bill would extend the minimum franchise tax and annual tax exemptions for a corporation and a limited liability company that are small businesses solely owned by a deployed member of the United States Armed Forces for taxable years beginning on or after January 1, 2020, and before January 1, 2030. This bill would take effect immediately as a tax levy. This bill would incorporate additional changes to Sections 17941 and 23153 of the Revenue and Taxation Code proposed by SB 349 to be operative only if this bill and SB 349 are enacted and this bill is enacted last.