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Tag: FTB Compliance
CA Escheat Letters to Founders: What to Do If You Get One
CA Escheat Letters to Founders If you’re a startup founder or CFO in California, you might be surprised one day to receive a formal letter from the California State Controller’s Office. It might reference “unclaimed property” or use the word “escheat.” At first glance, it may look like a phishing attempt. But in most cases, […]
Ending a California Trust? Don’t Forget the Final Form 541
Ending a California Trust When you’re ready to terminate a California trust, it may feel like you’re tying up the last loose end. But before you close the books and move on, there’s one final and critical tax step you can’t skip: filing the final California Form 541. Many founders, families, and estate planners overlook […]
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, […]
How to Start an LLC in California Without Paying Too Much in Taxes (2025 Edition)
Introduction Starting a Limited Liability Company (LLC) in California offers many benefits—but it also comes with one of the highest minimum taxes in the country. In 2025, California entrepreneurs must plan ahead to reduce their tax burden legally while remaining fully compliant with the Franchise Tax Board (FTB). Costs of Forming an LLC in California […]
California’s Franchise Tax: How to Reduce or Eliminate It (2025 Edition)
Introduction California imposes a minimum $800 franchise tax on most business entities—even if you make no income. In 2025, this tax continues to affect startups, holding companies, and out-of-state businesses operating in California. But with proper planning, you may be able to reduce or eliminate it legally. What Is the California Franchise Tax? Applicable Code: […]