Small Business & Property Ownership · Starting a business
State business taxes and fees at a glance
In this guide
- California business taxes are handled by several agencies, each with its own account and returns.
- The Franchise Tax Board collects income and franchise taxes; the CDTFA collects sales and use tax.
- Employers report payroll taxes to the EDD, and counties tax some business equipment.
| Agency | What it collects | Generally applies to |
|---|---|---|
| Franchise Tax Board (FTB) | Income and franchise taxes; the LLC annual tax and fee | Corporations, LLCs, partnerships, and individuals with business income |
| CDTFA | Sales and use tax, and certain special taxes and fees | Businesses that sell or lease taxable goods, and some specific industries |
| Employment Development Department (EDD) | Unemployment insurance, Employment Training Tax, and withholding of state disability insurance and personal income tax | Employers paying wages |
| County assessor | Property tax on real property and on some business personal property, such as equipment | Property owners; businesses with taxable business property |
| City or county | Local business taxes and fees | Depends on local rules |
| Entity | Rate |
|---|---|
| C corporation | 8.84% |
| S corporation | 1.5% (income also passes through to shareholders) |
| Banks and financial corporations | 10.84% |
Business personal property
County assessors tax some business equipment and fixtures. Businesses are generally required to file a Business Property Statement (form 571-L) when the assessor requests one or when the cost of their taxable business property reaches $100,000.
Where people get help
Each agency offers free guidance, and the CDTFA and FTB publish industry guides. Tax professionals and Small Business Development Centers help with record keeping and filing.
Official sources for this guide
Keep reading