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Passive Activity Franchise Taxes

Eversheds Sutherland (US) LLP

California Court of Appeal Holds Doing Business ≠ Any Activity Engaged In for Pecuniary Gain

On January 12, 2017, the California Court of Appeal held in a published opinion that a taxpayer passively holding a 0.2 percent interest in a California-based limited liability company (CA LLC) was not “doing business” in the...more

Allen Matkins

O Frabjous Day! Court Holds Passive Member Is Not “Doing Business”

Allen Matkins on

The State of California imposes its franchise tax on every corporation (other than a bank, financial corporation or exempt corporation) that is “doing business” in California. Cal. Rev. & Tax Code § 23151. This tax is...more

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