What Is a Small Enterprise Underneath California Regulation?

One of many key ideas in legislative drafting is consistency in language, together with definitions. In who’s a enterprise, there lacks the identical definition throughout state legislation. The truth is, California legislation supplies over two dozen totally different definitions of “small enterprise” all through the Codes. Is that this lack of a constant definition problematic?

It may very well be, but it surely emphasizes the purpose that some phrases are restricted to their use in a person Code (there are 29 of them in California), and even in a selected subset of a code (e.g., division, title, chapter, and many others.). The next is a sampling of various definitions of “small enterprise” discovered in several Codes:

Authorities Code Part 14837 – “Small enterprise” means an independently owned and operated enterprise that’s not dominant in its subject of operation, the principal workplace of which is situated in California, the officers of that are domiciled in California, and which, along with associates, has 100 or fewer staff, and common annual gross receipts of ten million {dollars} ($10,000,000) or much less over the earlier three years, or is a producer, as outlined in subdivision (c), with 100 or fewer staff. Commencing January 1, 2019, the typical annual gross receipts threshold shall be fifteen million {dollars} ($15,000,000).

Well being & Security Code Part 108855 – “Small enterprise” means any producer, importer, or distributor whose gross annual income for the sale of tableware is thirty thousand {dollars} ($30,000) or much less.

Streets and Highways Code Part 227.1 – For functions of this part, “small enterprise” means a for-profit enterprise having a internet value of no more than six million {dollars} ($6,000,000) and after tax earnings of no more than 4 million {dollars} ($4,000,000).

Well being and Security Code Part 131502 – “Small enterprise” means an entity situated in Santa Clara County that employs 50 or fewer individuals, with a minimum of 35 % of the staff incomes lower than 350 % of the federal poverty degree for a household measurement of 1, and that has not supplied well being care protection to its staff for, at minimal, 12 consecutive months,

Authorities Code Part 13995.77 – “Small enterprise” means a enterprise location with lower than a million {dollars} ($1,000,000) in whole California gross annual income from all sources.

Well being and Security Code Part 40503 – “Small enterprise” means a enterprise that’s independently owned and operated and meets all the following standards:

(A)  The variety of staff is 10 or much less.

(B)  The overall gross annual receipts are 5 hundred thousand {dollars} ($500,000) or much less.

Code of Civil Procedures Part 1028.5 – “Small enterprise” means a enterprise exercise that’s all the following:

(1) Independently owned and operated.

(2) Not dominant in its subject of operation.

(3) Not exceeding the next annual gross receipts or different standards within the classes of:

(A) Agriculture, a million {dollars} ($1,000,000).

(B) Normal development, 9 million 5 hundred thousand {dollars} ($9,500,000).

(C) Particular commerce development, 5 million {dollars} ($5,000,000).

(D) Retail commerce, two million {dollars} ($2,000,000).

(E) Wholesale commerce, 9 million 5 hundred thousand {dollars} ($9,500,000).

(F) Providers, two million {dollars} ($2,000,000).

(G) Transportation and warehousing, a million 5 hundred thousand {dollars} ($1,500,000).

(H) A producing enterprise not exceeding 250 staff.

(I) A well being care facility not exceeding 150 beds or a million 5 hundred thousand {dollars} ($1,500,000) in annual gross receipts.

(J) Producing and transmitting electrical energy not exceeding 4,500 megawatt hours yearly.

Authorities Code Part 12100.82 – “Small enterprise” means a enterprise or nonprofit that meets all the following standards, as confirmed by the workplace or fiscal agent by means of evaluate of income declines, different reduction funds obtained, credit score historical past, tax returns, and checking account validation:

(A) Is without doubt one of the following:

(i) A sole proprietor, unbiased contractor, 1099 worker, C-corporation, S-corporation, cooperative, restricted legal responsibility firm, partnership, or restricted partnership, with an annual gross income of lower than 5 million {dollars} ($5,000,000), however larger than one thousand {dollars} ($1,000), within the 2019 taxable 12 months.

(ii) A registered 501(c)(3), 501(c)(6), or 501(c)(19) nonprofit entity that had an annual gross income of lower than 5 million {dollars} ($5,000,000), however larger than one thousand {dollars} ($1,000), within the 2019 taxable 12 months.

(iii) A division or division of a bigger group or entity, resembling a tribal authorities, metropolis, county, or metropolis and county.

(iv) A corporation that’s fiscally sponsored by a nonprofit company.

(B) Started working within the state previous to June 1, 2019.

(C) Is at the moment energetic and working, or has a transparent plan to reopen when the state permits reopening of the enterprise.

(D) Has been impacted by COVID-19 and the associated well being and security restrictions, resembling enterprise interruptions or enterprise closures incurred on account of the COVID-19 pandemic.

(E) Gives organizing paperwork, resembling a 2019 tax return or Type 990, an affidavit from the board or authorizing official from the governing authority, detailing the governance construction; or a duplicate of an official submitting with the Secretary of State or with the native municipality, as relevant, together with, however not restricted to, Articles of Incorporation, Certificates of Group, Fictitious Title of Registration, or Authorities-Issued Enterprise License.

(F) Gives an appropriate type of government-issued picture identification, the place relevant.

Income and Taxation Code Part 17941 – “Small enterprise” means a restricted legal responsibility firm with whole earnings from all sources derived from, or attributable to, the state of 200 fifty thousand {dollars} ($250,000) or much less.

Authorities Code Part 53398. 52 – “Small enterprise” means an independently owned and operated enterprise that’s not dominant in its subject of operation, the principal workplace of which is situated in California, the officers of that are domiciled in California, and which, along with associates, has 100 or fewer staff, and common annual gross receipts of fifteen million {dollars} ($15,000,000) or much less over the earlier three years, or is a producer, as outlined in subdivision (c) of Part 14837, with 100 or fewer staff.

Authorities Code Part 11346.3 – “Small enterprise” means a enterprise that’s all the following:

(i) Independently owned and operated.

(ii) Not dominant in its subject of operation.

(iii) Has fewer than 100 staff.

Authorities Code Part 12100 – “Small enterprise” means a enterprise with lower than 100 staff and with a gross income of lower than 5 million {dollars} ($5,000,000)

Income and Taxation Code Part 23153 – “Small enterprise” means a company with whole earnings from all sources derived from, or attributable to, the state of 200 fifty thousand {dollars} ($250,000) or much less.

Well being and Security Code Part 23395.20 – “Small enterprise” means an independently owned and operated enterprise, that’s not dominant in its subject of operation, that, along with associates, has 100 or fewer staff, and that has common annual gross receipts of ten million {dollars} ($10,000,000) or much less over the earlier three years, or a enterprise that could be a producer, as outlined in Part 14837 of the Authorities Code, with 100 or fewer staff.

Income and Taxation Code Part 24416 – “Eligible small enterprise” means any commerce or enterprise that has gross receipts, much less returns and allowances, of lower than a million {dollars} ($1,000,000) through the earnings 12 months.

Income and Taxation Code Part 17053.73 – “Small enterprise” means a commerce or enterprise that has combination gross receipts, much less returns and allowances reportable to this state, of lower than two million {dollars} ($2,000,000) through the earlier taxable 12 months.

What Is a Small Enterprise Underneath California Regulation?

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