CA AB2086

Allows limited liability companies to pay annual taxes in either one lump sum by the 15th day of the 4th month, or in two or three equal installments (on the 15th of the 4th, 8th, and 12th months for three installments).

Eliminates the annual fee structure for limited liability companies that was previously based on total income brackets ranging from $900 to $11,790.

Provides that corporations with estimated tax amounts not exceeding the minimum franchise tax of $800 can choose to pay in one lump sum or in two or three equal installments.

Exempts small businesses solely owned by deployed members of the United States Armed Forces from the annual tax if the owner is deployed and the business operates at a loss or ceases operation (applies only through January 1, 2018).

Prohibits the Franchise Tax Board from imposing penalties or interest on taxpayers for choosing to use alternative payment options under the new installment provisions.