REVENUE AND TAXATION CODE section 17941(a)

California Revenue and Taxation Code Section 17941(a) reads:

For each taxable year beginning on or after January 1, 1997, a limited liability company doing business in this state (as defined in Section 23101) shall pay annually to this state a tax for the privilege of doing business in this state in an amount equal to the applicable amount specified in subdivision (d) of Section 23153 for the taxable year.

Disregarded Entity Not Doing Any Actual Business

Section 17941 and Section 17942 levy taxes only if a disregarded entity directly or through an agent or contractor "does business" (ie., on account of a business transaction of its own, as distinguished from receiving a pass-through.