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Category: Tax
Our Tax Experts lets you minimize and manage your tax liabilities considering critical tax factors to plan your taxation and guide you to reduce taxes.
Our Tax Experts lets you minimize and manage your tax liabilities considering critical tax factors to plan your taxation and guide you to reduce taxes.
QSBS & California: 0% State Exclusion? Myth-Busting the Rules
Introduction Heard you can sell startup stock tax-free under Qualified Small Business Stock (QSBS) rules? That’s only partially true especially if you live in California. In 2025, many founders mistakenly believe the QSBS 0% exclusion applies at the federal and state level. But California repealed its state QSBS exclusion, and it’s time to separate fact […]
Payroll R&D Credit: Why the CA Program Is Capped
Introduction Startups across the U.S. leverage the federal payroll R&D credit to offset up to $500,000 in employer-side payroll taxes. But what about California? In 2025, California still does not allow R&D credits to offset payroll tax, and its overall research credit program is non-refundable and capped for corporations. This guide explains why CA R&D […]
California R&D Credit vs. Federal: Can Founders Double-Dip?
Introduction Founders often ask: “Can I claim the R&D credit at both federal and California levels?” In 2025, the answer is yes but with key differences in calculation, rules, and refundability. In this blog, we compare the California Research Credit with the Federal R&D Credit under IRC §41 and guide founders on how to maximize […]
QSBS & California: 0% State Exclusion? Myth-Busting the Rules
Introduction You may have heard that Qualified Small Business Stock (QSBS) offers a 0% tax rate, but in California, this is where myths and reality diverge sharply. In this 2025 guide, we’ll unpack whether California honors IRC §1202 exclusions, how state sourcing affects your gain, and what founders need to know about myth-busting QSBS treatment […]
Stock-Option Income: When Do CA Non-Residents Owe?
Introduction Non-residents often believe they’re off the hook for California taxes but stock options granted while living or working in California may still be sourced to the state even years later. In 2025, with increasing audits on equity-based income, this blog explains when non-residents are liable for California taxes on exercised or vested stock options. […]
83(b) Election When You Reside in California: PIT vs Franchise Tax (2025 Guide)
Introduction Filing an 83(b) election in 2025 can save you thousands in long-term capital gains but if you’re a California resident, it comes with a twist: you must consider both Personal Income Tax (PIT) and the Franchise Tax Board’s rules. This blog unpacks the intersection of IRC §83(b) with California PIT reporting, state-sourced equity income, […]
California 409A Valuation Discounts: State Tax Footnotes Investors Read
Introduction Your startup’s 409A valuation isn’t just about issuing stock options it’s a due diligence magnet for investors and auditors alike. But here’s the twist for 2025: California investors are combing through state tax footnotes, especially for valuation discounts. In this guide, we cover how 409A valuation discounts affect California state tax reporting and how […]
Fixing a Rejected FTB Payment: Common Error Codes
When your California Franchise Tax Board (FTB) payment fails, the consequences can include late penalties, interest, and even suspension of your LLC or corporation. This blog explains the most common FTB payment rejection errors, what they mean, and how to fix them quickly for the 2025 tax year. Why FTB Payments Get Rejected FTB payment […]
ACH vs. Credit Card: Cheapest Way to Pay the CA FTB
Paying your California Franchise Tax Board (FTB) balance comes with options, but not all are cost-effective. Should you pay by ACH (bank debit) or credit card? This blog compares both methods for the 2025 tax year so you can avoid hidden fees and make the smartest choice for your business or personal tax obligations. Payment […]
How to E-Pay the CA $800 LLC Tax on the FTB Portal
Every California LLC is required to pay the $800 annual franchise tax to the Franchise Tax Board (FTB). The easiest and most secure method is online payment through the official FTB Web Pay portal. This blog walks you through the exact steps to make your 2025 payment without any errors. Who Needs to Pay the […]