At Westland Tax Services, we specialize in helping businesses efficiently manage their corporate income tax obligations in California. Whether your company is based in California or conducts business within the state, you have corporate tax responsibilities to two key entities:
The State of California – Franchise Tax Board (FTB): As a business entity operating in California, you are required to pay state corporate income taxes to the FTB. The exact amount of taxes you owe depends on a variety of factors, including your business structure, total income, allowable deductions, and credits. Compliance with California’s corporate tax regulations is not just a matter of financial prudence; it’s a legal obligation that ensures you meet your tax responsibilities accurately and avoid penalties.
The Federal Government – Internal Revenue Service (IRS): In addition to state obligations, all U.S. businesses are subject to federal corporate income taxes, which are administered by the IRS. Federal corporate tax rates are structured progressively, with higher incomes incurring higher tax percentages. Filing annual federal tax returns is a fundamental requirement, allowing your business to report its income, expenses, and deductions accurately.