CA AB1085

Exempts new limited partnerships formed on or after January 1, 2019, that are small businesses from paying minimum annual tax in their first taxable year if they have gross receipts of $50,000 or less.

Exempts new limited liability companies formed on or after January 1, 2019, that are small businesses from paying minimum annual tax in their first taxable year if they have gross receipts of $50,000 or less.

Defines "new" entities as those formed on or after January 1, 2019, and excludes entities that acquired business operations from existing sole proprietorships, partnerships, or other business entities.

Prohibits the exemption from applying to entities that reorganize solely to reduce minimum tax obligations or that fail to file timely returns.

Takes effect immediately as a tax levy.