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Tag: CA Startup Law
Stock-for-Stock Reorgs: California Franchise Tax Surprises
When your startup undergoes a stock-for-stock reorganization, the focus is usually on federal tax deferral under IRC §368(a)(1)(B) but if your company operates in California, the Franchise Tax Board (FTB) may have a different take. Many founders, CFOs, and legal teams overlook the state-level tax implications of stock swaps, especially when: Entities involved are incorporated […]
Installment Sales of Startup Equity: Watch for California PIT Interest Charges
Installment Sales of Startup Equity Founders and early investors often choose to sell their startup equity through an installment sale deferring recognition of capital gains over time. While this strategy can help with cash flow and tax planning, many forget one important twist: California may charge interest on the deferred income, even if the IRS […]
California VCP: Fix Unclaimed Property Issues Before Audit Hits
If you’ve never filed a Holder Notice Report in California or just received a letter from the State Controller’s Office, there’s a limited-time way to protect your business: the Voluntary Compliance Program (VCP). This program is a lifeline for startups and founders who want to fix past non-compliance related to unclaimed property without facing harsh […]