Agenda - Council - 02/08/2021 - Laserfiche WebLink

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01/13/21 REVISOR EAP/HR 21-01750 as introduced 2.1 Sec. 2. Minnesota Statutes 2020, section 289A.08, is amended by adding a subdivision to 2.2 read: 2.3 Subd. 7a. Election to file as C-option corporation. (a) A qualifying entity may elect 2.4 to file a return as a C-option corporation. Except as provided in this subdivision, a C-option 2.5 corporation must calculate its tax liability as a corporation subject to the franchise tax on 2.6 corporations imposed in section 290.02 and must allocate its income as a corporation as 2.7 required under sections 290.17, 290.191, and 290.20. 2.8 (b) The election under paragraph (a): 2.9 (1) must be made on or before the due date or extended due date of the qualifying entity's 2.10 return as a C-option corporation; 2.11 (2) may only be made by persons who hold more than 50 percent ownership interest in 2.12 the qualifying entity; and 2.13 (3) is binding on all persons who have an ownership interest in the qualifying entity. 2.14 (c) The election is binding for a period of four taxable years following the taxable year 2.15 of the election. The election may be revoked before the expiration of the period if: 2.16 (1) the revocation is requested by persons who hold more than 50 percent ownership 2.17 interest in the qualifying entity; and 2.18 (2) the revocation is made on or before the due date or the extended due date of the 2.19 qualifying entity's return for that year. 2.20 (d) If an election is revoked before the expiration of the period, a new election to file as 2.21 a C-option corporation may not be made by the qualifying entity for the following four 2.22 taxable years. 2.23 (e) The expiration or revocation of an election is effective at the close of a taxable year 2.24 and nothing in this section releases a C-option corporation from complying with the 2.25 requirements of this chapter for that taxable year. 2.26 (f) For purposes of this subdivision: 2.27 (1) "qualifying entity" means a: 2.28 (i) partnership; 2.29 (ii) limited liability company; or Sec. 2. 2