Corporations Code section 28047.1

“Smaller business firm” means a person that proposes to transact, or transacts, business on a regular and continuous basis in California and, together with its affiliates, has a net worth of not more than six million dollars ($6,000,000), and average net income after federal income taxes, excluding any carryover losses, for the preceding two years no greater than two million dollars ($2,000,000).

Source: Section 28047.1, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=CORP§ionNum=28047.­1.­ (updated Jan. 1, 2011; accessed Jul. 14, 2025).

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Verified:
Jul. 14, 2025

§ 28047.1's source at ca​.gov