Bill > AB1143

This bill makes several changes to California's tax laws, primarily concerning how different business entities are classified and taxed, and the consequences of failing to meet tax obligations. It clarifies that for state tax purposes, certain business entities, including limited liability companies (LLCs), will be classified the same way they are for federal tax purposes, aligning state regulations with federal ones that were in effect as of May 1, 2014, and ensuring consistency for LLCs. The bill also addresses the voidability of contracts made by businesses whose powers, rights, and privileges are suspended or forfeited due to non-compliance with tax laws, specifically extending the period for which contracts can be voided for LLCs that fail to file required tax returns or pay taxes. Additionally, it updates the definition of "corporation" to include LLCs classified as associations for California tax purposes and clarifies that "tax" for an LLC includes specific taxes and fees. Finally, the bill declares an urgency to ensure equal treatment of businesses and to update federal law references for business entity classification, allowing it to take effect immediately.