SB 349 passed the Senate Governance & Finance Committee. SB 349 authored by State Senator Anthony J. Portantino (D–La Cañada Flintridge) and co-authored by Assemblymember James Ramos (D- Highland) modifies the minimum franchise tax on small businesses and creates a tax structure to encourage entrepreneurship in California.
SB 349 is an attempt to help small businesses succeed and encourage investment growth while also respecting protections with LLCs (Limited Liability Corporations). The bill creates a fee structure based on a small businesses annual gross receipt to replace the flat $800 flat minimum tax mandate. This will help foster growth of small businesses and encourages entrepreneurship.
“Since my time in the Assembly, I have tried to find ways to support small businesses in California and I am very happy that this bill is moving forward. By eliminating the minimum tax responsibility, California will send a strong message of support to small business owners. Small businesses are an ever-increasing important component of a successful economy and we need to encourage their success,” commented Senator Portantino.
California’s small businesses account for a significant portion of the state’s employers and about 45 percent of our state’s exports. SB 349 is sponsored by the California Small Business Roundtable and seeks to bring some economic fairness into the small business tax structure.
“I want to thank Senator Portantino for authoring this important bill for California Small Businesses. SB 349 will give fairness based on size and further incentives, which will encourage all small businesses to incorporate. This bill will help produce more revenue for the State of California and we are glad this bill is moving forward in the legislature,” commented Betty Jo Toccoli, President of the California Small Business Association