CALIFORNIA TAX ATTORNEY

Tax Consequences for Businesses in California

Despite the high cost of living, California remains a top designation for places to live. People are attracted to the natural beauty and warm weather. Also, with the tech boom of the 2000s, some people are drawn to California for tech jobs. The magnetic aspects of California make it a potentially attractive location to do business. However, there are other factors to consider when planning to start a business in California, or if you already have a business there and seek ways to keep as much of your revenue as possible. One key factor that all businesses in California have to address is business taxes. Preserving California's beauty and managing all the challenges of earthquakes and droughts requires substantial financial revenue. Taxes on businesses are a vital source of that revenue, and businesses need help to navigate California's complex tax system.

CA Sales Tax Rate Compared to Other States

The California sales tax rate is among the highest in the nation. This rate can be tough on businesses that are already struggling with other high costs in California – namely property leases and labor costs. High sales taxes also push businesses to raise prices to recoup lost revenue.

CA Excise Taxes

California also places additional taxes on various other items – such as alcohol, cigarettes, and gas. These additional taxes can create more strain on certain businesses.

Double Taxation

California taxes create numerous unique problems for businesses. One notable problem that is not seen in most other states is double taxation. This happens when you set up a business using an LLC or S corporation (pass-through entities); California will charge your business a tax and also charge you a tax on your personal income as the owner of the small business.

Talk with a CA Tax Attorney

If you are working through the complexities of business taxes in California, contact a California Tax Attorney to help you devise a strategic approach that results in the greatest benefits for your business.

Tax Problems

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California Tax Attorneys is committed to answering your questions about IRS Offer in Compromise, IRS Audit & Appeals, IRS Installment Plan Agreement, California State Tax Issues, IRS Tax Levies/Liens, Payroll Taxes & Trust Fund Recovery Penalty, Unfiled Tax Returns, and Sales & Use Tax law issues in California.

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The information contained in this website is provided for informational purposes only and may not reflect the most current legal developments, and should not be construed as legal advice on any matter. The transmission and receipt of information contained on this Web site, in whole or in part, or communication with California Tax Attorneys via the Internet or e-mail through this website does not constitute or create a lawyer-client relationship between us and any recipient. You should not send us any confidential information in response to this webpage. Such responses will not create a lawyer-client relationship, and whatever you disclose to us will not be privileged or confidential unless we have agreed to act as your legal counsel and you have executed a written engagement agreement with California Tax Attorneys. Contact a licensed attorney for advice on specific legal issues.

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