CA AB1645

Extends first-year minimum franchise tax exemption for corporations incorporating or qualifying to do business in California on or after January 1, 2015, to cover both the first and second taxable years (previously only the first year was exempt).

Exempts limited partnerships, limited liability companies, and limited liability partnerships that register or begin doing business on or after January 1, 2015, from paying the annual tax (equivalent to the $800 minimum franchise tax) for their first and second taxable years.

Requires the Franchise Tax Board to notify limited liability companies, limited partnerships, and limited liability partnerships that annual taxes continue to be due until they file certificates of cancellation or dissolution with the Secretary of State.

Maintains existing exemptions for specific entities including credit unions, nonprofit cooperative associations, charitable organizations, and regulated investment companies and real estate investment trusts.

Takes effect immediately as a tax levy.