Beginning January 1, 2009, California employers with less than 20 employees may be able to take advantage of a $3000 Jobs Tax Credit for each new full time employee hired if the eligibility requirements discussed below are met. The jobs tax credit can be claimed on a 2009 personal or business tax return, and is $3000 for each additional full-time employee hired. An employer will not qualify for the credit unless there is a [...]

If your California LLC engages in business both in the state of California, and outside the state, it is probably entitled to a partial refund on its previously paid Annual Gross Income Tax.

Back in March of 2007, I advised you on how your limited liability company (LLC) should file a Protective Refund Claim for the years 2003 to 2007. I advised all California LLCs who engaged in interstate sales to send a letter signed by a managing member to the Franchise Tax Board (FTB) via confirmed fax to 916-845-9796, or registered mail (FTB, P.O. Box 942867, Sacramento, CA 94267-8888), with the following [...]

The American Recovery and Reinvestment Act has establish a new loan program made available under the U.S. Small Business Administration (SBA) called the SBA ARC Loan Program. Under the ARC Program, struggling for profit small businesses can get an [...]

The City of Los Angeles has instituted a tax penalty amnesty program effective May 1. 2009 through July 31, 2009. Under this program, taxpayers can avoid paying accrued penalties which can be as high as 40% for failing to report, or for underreporting, their business taxes. Businesses that have failed to comply will still have to pay the base tax, interest, and applicable fees owed, but will receive an automatic waiver of the usual penalty (which can be as high as 40%).

To qualify for the program, the taxpayer (individual or business entity) must:

1. File the proper [...]

Effective April 1, 2009, California’s base sales tax rate increased 1% to 8.25%. Yes this is not the tax rate paid by residents of California as each county has added percentages to the state’s base sales tax rate. In effect, most Californians are now paying an average of 9% on their retail purchases. In Los Angeles County the new sales tax rate is now a whopping 9.25%. In San Francisco, the new sales tax rate is 9.50% and in San Diego County the sales tax rate is now 8.75%.

More detailed information can be found in this 2009 publication [...]