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Calif. Panel Backs Withholding Tax Exclusion For LLCs

Law360, New York (March 27, 2014, 2:17 PM EDT) -- California lawmakers on Wednesday took the first steps toward passing legislation that would further conform treatment of limited liability companies with the federal tax code by excluding LLCs from the state's personal income tax withholding requirements.

The Senate Committee on Labor and Industrial Relations approved S.B. 1131, which will now be sent on to another panel for further consideration. The proposal is intended to clear up confusion regarding California's treatment of LLCs.

The bill would exclude LLCs recognized under federal law as partnerships from the California...
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