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Author: anshul
Enterprise Zone Hiring Credit Revival: Relevant for 2025?
Introduction For years, California’s Enterprise Zone Hiring Credit helped businesses reduce state tax by hiring from targeted groups. Although the program expired in 2014, talk of revival bills and local variants in 2025 is back on the table. This guide explores the current status of the credit, proposed changes, and how startup founders and employers […]
Manufacturers’ Sales Tax Exemption for Robotics Startups
Introduction California’s partial sales and use tax exemption for manufacturers can be a game-changer especially for robotics startups purchasing high-tech equipment. In this 2025 guide, we explain how eligible businesses can save up to 3.9375% in state-level sales tax, and how to apply it to robotics, AI, and automation equipment. Relevant Tax Code and Regulations […]
New Energy Credits for California Data Centers
Introduction In 2025, California is making another bold move toward clean tech. A newly proposed bill offers green energy tax credits for data centers, specifically targeting companies that adopt solar, battery storage, and AI cooling systems. This blog explores the proposed California Clean Infrastructure Act of 2025, who qualifies, how to claim these credits, and […]
California 409A Valuation Discounts: State Tax Footnotes Investors Read
Introduction If you’re a California startup issuing stock options, your 409A valuation isn’t just a federal concern. The Franchise Tax Board (FTB) scrutinizes how discounts and FMV are reported for state tax purposes too. In 2025, with more investors reviewing state-level footnotes and tax risks, understanding how CA treats 409A discounts can impact cap tables, […]
Cryptocurrency Taxes in California: PIT vs. Franchise Board Guidance
Introduction In 2025, California crypto traders, DeFi investors, and NFT creators face two levels of tax scrutiny: federal and state. While the IRS has provided detailed cryptocurrency guidance, the California Franchise Tax Board (FTB) has begun matching federal treatment with additional sourcing and PIT (Personal Income Tax) consequences. If you’re a resident, part-year resident, or […]
NFT Royalties and Sales Tax: CDTFA Position 2025
Introduction As NFTs continue to surge in popularity in 2025, the California Department of Tax and Fee Administration (CDTFA) has sharpened its position: certain NFT transactions may now trigger sales tax obligations. This guide covers royalty income, marketplace facilitation rules, and how NFT creators, resellers, and buyers should navigate California’s sales tax framework. IRC and […]
Gig Worker Taxes: Uber/Lyft 1099-K Changes in CA
Introduction Starting in 2025, California gig workers face a tighter reporting regime under both federal and state laws. The IRS has reduced the 1099-K threshold to $600, and California conforms, meaning Uber, Lyft, DoorDash, Instacart, and other platforms now send 1099-Ks to most of their workers. This guide will explain the 2025 tax filing process […]
S-Corp Reasonable Compensation: Avoiding FTB Audits
Introduction If you own an S-Corporation in California, the Franchise Tax Board (FTB) is watching how you pay yourself. In 2025, FTB and IRS audits are increasingly focused on reasonable compensation especially for founder-only businesses. Paying yourself too little (or nothing) can lead to back payroll taxes, penalties, and misclassification audits. This guide explains what […]
California Alternative LLC Structures: B-Corp & Social-Purpose Corp Taxes
Introduction In 2025, California offers more than traditional LLCs and C-Corps. Alternative legal structures like Benefit Corporations (B-Corps) and Social Purpose Corporations (SPCs) provide mission-driven businesses with the flexibility to pursue impact and profit. But what about taxes? This guide breaks down the Franchise Tax Board (FTB) treatment of B-Corps and SPCs in California, comparing […]
California Dynasty Trust? Timeline, Tax, and Legal Hurdles
Introduction A Dynasty Trust is a powerful estate-planning tool that can protect wealth for multiple generations often 100 years or more. But in California, unlike states like Nevada or South Dakota, dynasty trusts face legal limitations, high taxation, and regulatory complexity. In this 2025 guide, we’ll break down how dynasty trusts work, what’s allowed under […]