031: Doing Business In California Is Taxing

If you ever receive a tax demand notice from the IRS, don’t get intimidated. You see, the IRS is going to assume that you owe them and it's your responsibility to prove them wrong. They just want information.

In today’s episode, we talk about why doing business in California is taxing (and why it’s probably a great option too!) California, particularly, now has the fifth largest economy in the world. In fact, it’s greater than the whole of the UK.

So leaving California out because you're frustrated or intimidated or you think that it's too expensive, is something you have to weigh out first because that could mean you’re leaving profit on the table.

You need to understand that this can apply to other states. This is just a taste of what’s to come as our economy continues to grow its online, e-commerce revenue-generating engine. So make sure that, whatever needs to apply to you, you’re getting the answers you need for the trajectory of your business.

In this episode, you will hear:

• The tax demand letter sent out in California
• Why doing business in California is a great option
• How do you know if you owe California taxes and what are the options? 
• Why you should read tax notices even if you don’t understand them
• Are penalties and fines and interested tax-deductible?
• What you need to know once you file income tax returns in the state of California

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Supporting Resources:

Ep 007 Navigating Sales Tax On Your Own with Alex Oxford

Also, check out this special episode on Alex Oxford's podcast where he interviewed our very own Chris Mahler, CPA regarding Multi-State Income Tax Risks.