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Tag: Startup Compliance
California Gross Premiums Tax on AI InsurTech Startups
As AI-powered InsurTech startups continue to scale across California, many are entering regulated insurance business models issuing digital policies, underwriting risk through licensed carriers, or acting as MGAs. But one California-specific tax often gets missed in early planning: the Gross Premiums Tax (GPT) under California Constitution Article XIII, Section 28. Unlike income tax, this tax […]
CA NOL Suspension : Coming Back?
California startups and high-income founders were hit hard when the Net Operating Loss (NOL) deduction was suspended under AB 85 during pandemic-era budgets. With 2025 underway, many are asking: Will California reinstate NOL usage, or will suspensions continue? Let’s decode what’s happening, what to prepare for, and how to preserve your NOL carryforwards while staying […]
Public Utility Tax on SaaS Subscriptions: Does It Apply in California?
As more SaaS startups scale in California, founders are facing unexpected tax classifications especially when their platforms involve communications, data transmission, or streaming. One area drawing scrutiny is whether SaaS services are subject to Public Utility Tax (PUT) under California’s rules or local ordinances. Although California doesn’t impose a state-level sales tax on most SaaS […]
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, […]