California finally gave us a break on the $800 minimum fee for the privilege of doing business in California.
Assembly Bill 85
“The goal of this act is to help and reduce costs for first-year California small businesses. Existing law imposes an annual minimum franchise tax of eight hundred dollars ($800) on every corporation, and an annual tax of eight hundred dollars ($800) on every limited liability company (LLC), limited partnership (LP), and limited liability partnership (LLP), which may be difficult to afford for first-year businesses. As such, these taxes may stifle economic growth and job creation and may inhibit the formation of many small businesses.”
This only applies to 2020, 2021 and 2022. Notice it only helps LLCs, LPs, and LLPs who started in 2020. Corporations still pay. Annoying…