Los Angeles is the cultural, commercial and financial centre of Southern California and the second most populous city in the USA, attracting a considerable number of expats each year.
Business taxes in Los Angeles are those which are set down by the state of California.
California imposes three types of income taxes on business, these being –
- a corporate tax
- a franchise tax
- an alternative minimum tax.
The corporate tax applies to corporations and LLC’s (Limited Liability Companies) that elect to be treated as corporations.
The tax rate is 8.84% on the net taxable income of the corporation or LLC from business activity in California.
Corporations are not subject to the State’s franchise tax, but they are subject to the states alternative minimum tax (AMT) of 6.65% on the net taxable income.
A franchise tax is a tax on doing business in California.
The tax applies to S Corporations, LLCs, Limited Liability Partnerships (LLPs) and Limited Partnerships.
In addition, traditional corporations, or C corporations, that do not earn positive net income are not subject to corporate tax but must pay a franchise tax instead.
For an S Corporation, the franchise tax is 1.5% of the corporation’s net income with a minimum tax amount of $ 800.00 per tax year.
For standard LLC’s, the franchise tax is a flat fee rather than a percentage of net income. The fee is paid on a graduating scale depending on the LLC’s net income.
Our Los Angeles ETeam member is an experienced tax specialist who can provide the highest level of service and professionalism to all your business tax needs
CST Tax Advisors
CST Tax Advisors provides International tax advice and tax compliance services for Global Expats and International Private Enterprises.
With offices in key global locations, we leverage our local knowledge, international expertise and professional partnerships delivered with a personal level of service that’s tailored to their needs.
Our highly competent professionals are able to provide you with guidance and solutions to a wide range of tax, accounting, and business issues.
Contact Person: Geraldine Chapman
Contact Number: 02 8920 0077
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