Annual Tax Fees Waived for New Business in California

  • August 11, 2022
  • Blog
Tax exemption

If you are interested in starting a Limited Liability Company in California, there is no time like the present. In an effort to welcome new businesses to the golden state, California Governor Gavin Newsome signed legislation in 2020 to exempt startups from paying the LLC franchise tax during their first year in business. Assembly Bill 85, exempts LLCs. LLPs, and LPs from paying the annual minimum franchise tax of $800 in their first taxable year. To qualify for this exemption, the entity must register, organize, or file with the secretary of state to do business in California between January 1, 2021, and December 31, 2023.

After receiving their initial exemption, the entity must begin to pay the $800 annual minimum franchise tax each year until it formally dissolves. Previously only corporations were exempt from paying the franchise tax in their first tax year.

  • January 17, 2023
  • Blog

Proposed Federal Law Could Ban Non-Competes

The Federal Trade Commission (FTC) has proposed a rule that would ban all non-competes with very limited exceptions. If approved, the new rule would make it illegal for an employer to attempt to enter into a non-compete agreement with an employee, maintain an existing non-compete agreement, or advise an employee...

  • December 01, 2022
  • Blog

California’s 2023 Minimum Wage Adjustments

Effective January 1, 2023, the state-wide California minimum wage will rise to $15.50 per hour for all employees, regardless of the size of their employer. This accelerated increase is required by a provision in the state's existing minimum wage law that was triggered because inflation exceeded 7%. Certain counties and cities in...