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.

employment law
  • November 22, 2023
  • Blog

Employment Law 2024 Updates

With 2023 coming to an end, there are many new employment laws taking effect in 2024. It is imperative for employers to familiarize themselves with these new laws to ensure their businesses are compliant in the new year. Below is a summary of some relevant laws that are going into...

  • October 27, 2023
  • Blog

Corporate Transparency Act (CTA)

In 2021, Congress passed the Corporate Transparency Act (CTA) on a bipartisan basis. This law creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide gains through shell companies or other ownership structures. The reporting rule...