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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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P


415.0000 Person

Annotation 415.0110


415.0110 Limited Liability Companies. At least eight states have authorized a business structure called limited liability companies. These organizations are neither partnerships nor corporations. This state has neither recognized nor regulated this ownership concept. However, such organizations are clearly "persons" under section 6005 and must hold permits if they engage in selling activities in California. In the absence of legislation or case law, there is no authority to impose the company's unpaid tax liability on the company's owners. The seller's permit should reflect the nature of the organization and the state law under which it is authorized. 10/18/93.

(Note.—Statutory change re California limited liability companies.)