California grudgingly crawls aboard the LLC bandwagon. (limited liability company) (California Taxes)

After several years of politically motivated debate, the California Legislature has passed the long-awaited California Limited Liability Company Act. The bill, which Gov. Wilson recently signed into law, authorizes the formation of limited liability companies in California. Professionals such as CPAs are excluded under the new law.

California, the 46th state to enact some form of LLC legislation, once again reinforced its image as a lukewarm business environment. Virtually every other state that imposes a corporate income tax beat California to the punch in adopting LLC legislation. And, true to form, California's new law extracts a toll tax from businesses for the "privilege" of operating as an LLC. This annual fee will range from $500 to $4,000, depending on net …