California Court of Appeal
Swart Enterprises v. Franchise Tax Bd., 070922
In a case dealing with the issue of whether California's franchise tax applies to an out-of-state corporation whose sole connection with California is a 0.2 percent ownership interest in a manager-managed California limited liability company (LLC) investment fund, the trial court's judgment is affirmed where passively holding a 0.2 percent ownership interest, with no right of control over the business affairs of the LLC, does not constitute 'doing business' in California within the meaning of Rev. & Tax. Code section 23101.
Appellate Information
- Decided
- Published 2017/01/12
Judges
- PENA
Court
- California Court of Appeal