For people who live, work, and may own a business in Los Angeles there are a myriad of tax concerns to be aware of and to address. While working with an experienced tax attorney is a must for serious tax problems, tax controversies, and civil or criminal tax charges some more routine matters can be handled by the taxpayer himself or herself. In fact, there are a wealth of resources available to guide taxpayers on routine, relatively straightforward tax issues. Even in situations where the taxpayer would nevertheless prefer to have the peace of mind an experienced tax professional can bring, these resources can serve as a starting point for the taxpayer to develop an understanding of the tax system and their tax obligations.
At the Law offices of Robert Hoffman we are dedicated to providing effective tax representation on a broad array of issues. As a service to those living in the Los Angeles area we have collected a number of tax resources. These resources should serve as a starting point for many of your Los Angeles tax questions and inquiries. If matters become more complex or if you’d prefer to work with some guidance, call our tax law firm at 800-897-3915 on contact us online today.
Tax Resources for Small Business Owners and Corporations in L.A.
Businesses in California and Los Angeles must be aware of a number of state, local, and federal tax requirements and concerns. These can include:
- Registration for a business license – Businesses in Los Angeles must register with the city’s Office of Finance. This requirement exists for new businesses and old businesses alike. While most new businesses are exempt from city business taxes during the first three years, registration is still mandatory. A copy of the Business Tax Application must be submitted by new businesses and those who have not yet registered. Businesses that have previously registered can renew their business tax registration online.
- Business tax exemptions – The City of Los Angeles has made a number of tax exemptions available to new and existing businesses. The creative artist exemption can provide tax relief up to $300,000. A new business or business that relocates to L.A. may be eligible for up to three years of business tax exemptions. Registered small businesses with applicable tax receipts less than $100,000 may qualify for this exemption.
- Filings for non-profit businesses – Non-profits companies and charitable endeavors must first be recognized as such under federal law. Organizations that can meet these requirements can apply for a business tax exemption and gross receipt tax exemption.
- Franchise tax concerns – The Franchise Tax board is responsible for the administration and oversight of corporate income taxes in California.
- Sales tax and excise tax concerns – the Board of Equalization handles the administration of state sales tax and state taxes on alcohol, tobacco, and fuel.
- Payroll tax issues — The state of California has four payroll taxes: Unemployment Insurance (UI), Employment Training Tax (ETT), State Disability Insurance (SDI), and Personal Income Tax (PIT). These taxes along with federal payroll taxes must be handled properly and often require numerous time-sensitive filings.
Aside from these state and local obligations, business owners must also be sure to comply with federal tax obligations. Information about obtaining a federal employer tax ID, payroll taxes, self-employment questions, and more can be found at the IRS small business and self-employed tax portal.
Property Tax Information for Los Angeles Home Owners and Property Owners
Individuals must also be sure to comply with all aspects of the administration of property taxes. A property tax postponement act is available for certain individuals with an annual household income of $35,500 or less. They may, beginning in September 2016, apply to defer payment of current year property taxes on their principal residence.
While California’s proposition 13 established a base year for property tax assessment and caps tax increases at two percent per a year, other important considerations exists for property owners. One of the more common considerations includes when the owner believes that the property has decreased in value. Property owners can file a decline-in-value application to have their property reassessed. This reassessment can often result in the realization of tax savings. All real property including single-family dwellings, multi-family homes, businesses, and apartments can qualify.
Experienced Los Angeles Tax Guidance
The Hoffman Law Offices are dedicated to providing high-quality tax representation and guidance in Los Angeles. To schedule a free and confidential tax consultation for you or your business call us at 800-897-3915 on contact us online today.