California · Headquartered in Torrance
CPA, bookkeeping & fractional CFO services in California
California has some of the most complex business taxes in the country, from the $800 minimum franchise tax to graduated personal rates up to 13.3%. CPA Torrance is a CPA-led firm based in Torrance that keeps California businesses compliant, organized and ahead on tax planning.
- Office in Torrance, CA
- Franchise Tax Board filings tracked
- In-person or remote across California
In short
What taxes does a California business pay?
Most California businesses pay federal income tax plus California tax through the Franchise Tax Board. LLCs and corporations owe at least the $800 annual minimum franchise tax, LLCs pay an extra fee once gross receipts pass $250,000, and C corporations pay 8.84% on net income. Owners of pass-through businesses pay personal rates from 1% to 13.3%, and most sales are subject to the 7.25% statewide sales tax plus local district taxes.
- Personal income tax
- 1% to 13.3%
- Corporate tax rate
- 8.84%
- Minimum franchise tax
- $800 a year
- Statewide sales tax
- 7.25% + local
Services in California
What we do for California business owners
From Los Angeles agencies to Bay Area startups and Central Valley distributors, California businesses face state rules that most other states do not have. We handle monthly books, California and federal tax planning, filings and CFO reporting from one team.
Bookkeeping Services
- Monthly reconciliations in QuickBooks Online
- California sales and use tax tracking
- Payroll and EDD liability review
- Monthly profit and loss and balance sheet
- Clean books ready for your CPA
Tax Planning & Strategy
- S corporation and reasonable salary planning
- Pass-through entity elective tax (PTET) review
- Franchise tax and LLC fee planning
- Quarterly federal and California estimates
- Retirement plan and timing strategies
Tax Filing & Compliance
- Federal and California business returns
- Form 568, 100 and 100S filings
- Franchise Tax Board notice help
- Statement of Information reminders
- Due-date tracking for every filing
Fractional CFO Services
- 13-week cash-flow forecasts
- Budget versus actual reviews
- Margin and pricing analysis
- Lender- and investor-ready reporting
- Hiring and expansion planning
California tax planning
Planning around California taxes
California taxes income at the state level on top of federal tax, and it does not follow every federal rule. Good planning looks at entity type, owner pay, the PTET election and timing together, so you keep more of what the business earns.
Book a 15-min callFranchise tax and LLC fees
Every LLC and corporation owes the $800 minimum each year. We plan for the LLC gross receipts fee and corporate tax so there are no surprise bills.
The PTET election
Pass-through owners can elect to pay California tax at the entity level, which can restore a federal deduction lost to the SALT cap. We model whether it saves you money.
Federal and state conformity
California differs from federal law on depreciation, bonus deductions and some credits. We track both sets of rules so your returns match.
Who we work with
California industries we serve
We work with owner-led businesses across California, with deep experience in the industries that make up most of the state economy.
E-commerce sellers
Multi-channel bookkeeping, California sales tax and inventory accounting for online sellers.
Healthcare practices
Medical, dental and therapy practices with payer reconciliation and clean monthly books.
Real estate investors
Property accounting for landlords, flippers and developers, organized for lenders.
Professional firms
Agencies, consultants and law firms that bill by the hour, project or retainer.
Startups and tech
Investor-ready financials, R&D credit support and burn-rate tracking for founders.
Logistics and trade
Import, distribution and trucking companies near the Ports of LA and Long Beach.
Why California businesses choose CPA Torrance
Areas we cover
Serving businesses across California
Our office is in Torrance, in the South Bay of Los Angeles County. We meet clients in person across Los Angeles County and work with businesses in San Diego, Orange County, the Inland Empire, the Bay Area and the Central Valley through remote meetings.
FAQ
California business tax and accounting questions
Not covered here? A 15-minute call gets you a straight answer for your situation.
What financial services does CPA Torrance provide to California businesses?
We provide monthly bookkeeping, federal and California tax planning, business tax filing and fractional CFO services. Everything runs from one set of books, so your bookkeeper, CPA and CFO advisor work from the same numbers instead of three disconnected vendors.
Does every California LLC have to pay the $800 franchise tax?
Yes. Almost every LLC, S corporation and C corporation doing business in California or registered there owes the $800 annual minimum franchise tax, even with no income. LLCs with gross receipts over $250,000 also owe an LLC fee, which rises with revenue.
What is the California PTET and should my business elect it?
The pass-through entity elective tax lets partnerships, LLCs and S corporations pay California income tax at the entity level. Owners then get a California credit, and the business may deduct the tax federally, which can work around the federal SALT cap. Whether it saves money depends on your income and ownership, so we model it each year.
Is an S corporation a good idea for a California business?
Often, once profit is steady. An S corporation can cut self-employment tax by splitting income between a reasonable salary and distributions. California charges S corporations a 1.5% tax on net income with the $800 minimum, so we compare the total cost before you switch.
What sales tax do California businesses charge?
The statewide base rate is 7.25%, and local district taxes push the total higher in many cities and counties. Rates depend on where the sale is delivered, so online sellers and businesses with several locations need to track rates by address and file with the CDTFA.
Do you only work with businesses in Los Angeles?
No. Our office is in Torrance and we meet clients in person across Los Angeles County and the South Bay, but we work with businesses throughout California and in all 50 states through video meetings and a secure document portal.
How do I get started with CPA Torrance?
Book a 15-minute call or request a free financial assessment. We review your books, tax position and systems, show you where the gaps are and recommend the right mix of bookkeeping, tax and CFO support.
Explore California service areas
Get your California taxes ahead of schedule.
Book a call with a Torrance CPA to review your books, franchise tax and planning options.