Small Business Taxes in California: The Ultimate 2025 Guide for Entrepreneurs

What Are Small Business Taxes in California?

If you’re running a small business in California, understanding the various taxes that apply is crucial. As a business owner, you’re likely already familiar with federal taxes, but California has its own set of rules that you need to keep in mind.

In this section, I’ll walk you through what qualifies as a small business, the types of taxes small businesses in California face, and the key differences between state and federal taxes.

What qualifies as a small business in California?

In California, the definition of a small business can vary depending on the context. The IRS considers small businesses as those that meet the Small Business Administration (SBA) size standards, which generally define small businesses as those with fewer than 500 employees.

However, California’s state tax system uses its own criteria. The California Secretary of State may categorise a small business differently based on annual revenue, number of employees, and the industry.

For tax purposes, small businesses are usually considered those with gross receipts below $10 million annually.

These businesses may also have access to specific exemptions or deductions, depending on their structure and activities.

Types of Taxes Small Businesses Face in California:

Here are the key taxes that you, as a small business owner in California, should be aware of:

a. Franchise Tax: This is one of the most notable taxes in California. Every business, even if it doesn’t make a profit, is required to pay an annual minimum franchise tax of $800 to the California Franchise Tax Board (FTB).

This tax applies to corporations, LLCs, limited partnerships, and even some sole proprietorships unless they’re exempt.

b. California business tax $800: It’s important to note that if your business is a corporation or an LLC, you must pay this annual franchise tax, regardless of whether you’re making a profit.

There are some exceptions for new businesses, but this tax remains a major obligation.

c. Sales Tax: If your business is involved in selling physical goods, California requires you to collect and remit sales tax. The current statewide sales tax rate is 7.25%, but local districts may add additional taxes.

This means that if you have a physical store or sell goods online to California customers, you’ll need to collect this tax and submit it to the state.

d. Employment Taxes: When you hire employees, you’re also responsible for state employment taxes. This includes:

State Unemployment Tax (SUTA): This tax helps fund the state’s unemployment benefits program.

e. Employee Payroll Taxes: You’ll also need to withhold income taxes from your employee’s wages and pay the employer portion of Social Security and Medicare taxes.

These employment taxes can be managed using small business tax software, which can simplify calculating withholding amounts and filing payroll taxes online.

Understanding State vs. Federal Taxes

Small business owners in California must comply with both state and federal tax regulations, and while there are similarities, there are key differences.

Federal Taxes: The IRS is the authority when it comes to federal taxes. You’ll be subject to federal income tax, and self-employment taxes, and may need to file quarterly estimated taxes.

The federal tax structure is uniform across all states, but rates and regulations can vary depending on your business structure (LLC, S-corp, etc.).

State Taxes: Unlike federal taxes, California has its own tax rates and rules. For example, California’s income tax rates are progressive, meaning the more you earn, the higher the rate you’ll pay.

This is different from the federal tax system, which is also progressive but with different brackets.

One important tax to keep in mind is the California business tax rate, which can differ based on your business’s structure and revenue.

For instance, LLCs are taxed differently than sole proprietors. Similarly, a small business’s California business tax payment depends on factors like gross receipts, payroll, and other specifics.

For small business owners who are not yet familiar with the filing process, the California business tax calculator can help estimate your taxes based on your revenue, business type, and location.

Other Considerations:

a. Small Business Taxes Checklist: To keep everything organized, it’s wise to maintain a checklist to ensure you’re meeting all your tax obligations. This includes:

Filing quarterly taxes if required.
Staying up to date with your California business tax payments.
Keeping track of sales tax collections and remittance deadlines.

b. How to file business taxes in California: Filing taxes in California can seem daunting, but tools like the small business taxes calculator and software solutions can simplify the process.

It’s always a good idea to use small business taxes software to streamline filing, especially when it comes to handling sales tax and employment tax withholdings.

California Small Business Tax Rates (2025)

California’s tax rates can vary depending on your business structure, whether it’s a sole proprietorship, LLC, or corporation.

In 2025, there are key tax categories that every small business owner should be aware of.

The state imposes several taxes on businesses, including franchise taxes, sales taxes, and employment taxes, all of which are important when calculating your overall tax burden.

Whether you’re filing online or meeting with a tax professional, it’s essential to understand the specific tax rates that apply to your situation.

BOOK YOUR FREE CONSULTATION NOW

For California small business owners, there’s a lot to consider, but don’t worry—I’ll break it all down for you, so you know exactly what to expect.

a. Tax Rates Overview

Here’s a look at the different types of taxes small businesses in California need to be aware of in 2025:

Tax Type	Rate
Franchise Tax	$800 annual fee for most LLCs
Sales Tax	7.25% state base rate (local taxes may apply)
LLC Taxes	$800 annual tax (LLC fee)
Corporate Taxes	8.84% for standard corporations
Employment Taxes	Varies based on wages and employee status

Understanding these taxes ensures you’re prepared when the time comes to file.

Let’s dive into each type of tax to give you a clearer picture.

b. Franchise Tax Rates

The franchise tax is a mandatory fee businesses must pay for the privilege of doing business in California. In 2025, most businesses, including LLCs, will owe a flat $800 franchise tax annually.

This is true even if the business doesn’t generate any revenue. The California Franchise Tax Board (FTB) collects this tax and expects it to be paid by the 15th day of the 4th month after your business’s start date.

For small businesses with annual income of $250,000 or more, the franchise tax increases, but the minimum remains at $800. For corporations, the rate is a bit different—corporations are taxed at 8.84% of their net income.

Understanding this is important because it can significantly affect your bottom line. If you’re unsure about your specific situation, a small business taxes calculator can help you estimate your tax obligations.

c. Sales Tax Rates

California imposes a state-based sales tax rate of 7.25%, which can be higher depending on the local district.

Sales tax applies to most tangible goods and some services, so if your business sells physical products or certain taxable services, you need to collect this tax from your customers.

Keep in mind that you’ll also need to file quarterly sales tax returns to report the amount of tax collected and pay it to the California Department of Tax and Fee Administration (CDTFA).

It’s a good idea to use an online small business taxes calculator to determine your potential sales tax obligations, especially if you have a lot of transactions or sell in multiple districts.

It will help you avoid mistakes when calculating and remitting the sales tax.

d. LLC Taxes and Corporate Taxes

For LLCs in California, the rules are straightforward. Most LLCs must pay an annual $800 franchise tax, regardless of how much income they earn. This tax is due by the 15th day of the 4th month after the LLC is formed or begins business activities.

However, LLCs with gross receipts of less than $250,000 might be exempt from additional taxes, but they are still liable for the $800 franchise tax.

Corporations, on the other hand, are taxed at 8.84% of their net income in California. If your business is set up as a corporation, be prepared to file corporate tax returns with the Franchise Tax Board (FTB), and remember that this tax is on your net income, not your gross revenue.

e. Employment Tax Rates

If your business has employees, you’ll need to be aware of California’s employment tax rates.

These taxes include contributions to state disability insurance (SDI), unemployment insurance (UI), and employment training tax (ETT). The rate for these taxes varies depending on the wages you pay your employees.

The state employment tax rate for unemployment insurance typically ranges between 1.5% and 6.2%, depending on your company’s history and wages paid.

As a small business owner, it’s crucial to keep track of these taxes and ensure you file your quarterly employment tax returns.

If you’re unsure about how much you owe, a small business taxes calculator can help you estimate this, making your job easier when preparing your payments.

f. LLC Tax Rates in California

For LLCs, as mentioned earlier, California requires an $800 annual franchise tax. Additionally, LLCs are subject to an additional fee based on their gross income, which increases with higher earnings.

Here’s a quick breakdown of the additional LLC fees:

Gross Income	Additional Fee
$250,000 to $499,999	$900
$500,000 to $999,999	$2,500
$1 million or more	$6,000

These fees are in addition to the $800 annual tax and must be paid annually, so it’s essential to track your gross income each year. You’ll also need to file an annual return with the Franchise Tax Board.

California Business Tax Calculator

One of the best tools to help you estimate your taxes is a California business tax calculator. Whether you’re an LLC or corporation, this calculator will help you estimate how much you owe in franchise taxes, sales taxes, and employment taxes.

It’s especially helpful for small businesses as it takes the guesswork out of tax season.

You can easily find these calculators on the official California Franchise Tax Board website or through trusted third-party sites.

Simply enter your business’s details, such as income, location, and type of business, and it will give you an accurate estimate of your taxes for the year.

Using these calculators helps you plan ahead and avoid surprises at tax time. Whether you need a small business taxes checklist or just want to make sure you’re on the right track, these tools are invaluable.

How to Use a California Business Tax Calculator to Estimate Your Yearly Taxes

To use a California business tax calculator, follow these simple steps:

Enter Business Information: Provide details such as your business’s type (LLC, corporation, etc.), your gross revenue, and your location (which affects the sales tax rate).
Select the Tax Type: Choose which tax you need to calculate—franchise tax, employment tax, or sales tax.
Review Results: The calculator will generate an estimate of what you owe based on the information you provided.

By using this tool, you can get a clearer picture of your tax obligations and plan for tax season with confidence.

It’s one of the simplest ways to manage your small business taxes online and ensure you’re fully prepared.

How to File Small Business Taxes in California

Over the years, I’ve helped many entrepreneurs navigate the ins and outs of taxes, and I’m here to break it down for you. Whether you’re filing taxes for your LLC, corporation, or sole proprietorship, the steps are generally the same.

Let’s take a look at what you need to do to get your business taxes filed correctly in California.

Step-by-Step Process for Filing Taxes in 2025:

1. Gather Documentation:
Before you even think about filling out any forms, it’s crucial to gather all the necessary documents. These will include:

Income records: Ensure that all your sales, invoices, and earnings are accounted for.
Expenses: This includes rent, utilities, payroll, and other operational costs.
Deductions: The state of California offers several deductions that could save you money. This might include home office deductions, business-related vehicle expenses, and others.
Payroll: If you have employees, make sure you have all W-2s, 1099s, and any other payroll-related documents. Having all these documents on hand will streamline the process of filing taxes and help you avoid mistakes.

2. Registering Your Business with the State:
If you haven’t already, you’ll need to register your business with the California Secretary of State.

This will help you obtain a California business tax ID number (EIN), which is essential for tax filings. You’ll also need this ID to apply for permits and licenses required for your business.

3. Choosing the Right Tax Forms:
The tax forms you need to file will depend on the structure of your business:

Form 100: If your business is a corporation, you’ll need to use Form 100 to report income, expenses, and calculate your corporate tax rate.
Form 568: For Limited Liability Companies (LLCs), you’ll typically file Form 568. This form is used to report income, deductions, and any fees owed.
Form 540 or 1040 Schedule C: For sole proprietors, Form 540 (California Resident Income Tax Return) and Schedule C (Profit or Loss from Business) may be required. These forms are used to report income and expenses for your business.

4. Filing Deadlines:
It’s essential to stay on top of your filing deadlines to avoid any penalties. For California small businesses, here are the general deadlines:

Corporations: Due the 15th day of the 4th month after the end of your fiscal year.
LLCs: Due the 15th day of the 4th month after the end of your fiscal year (the same as corporations).
Quarterly Taxes: For businesses making over $800 annually, quarterly tax payments are required. These are typically due on the 15th of April, June, September, and January of the following year.
Missing these deadlines could result in hefty penalties, so it’s always best to file early and ensure your paperwork is in order.

5. Paying Your Taxes:
California provides various options to pay your small business taxes:

Online Payment: You can pay through the California Franchise Tax Board (FTB) online system, which allows you to pay directly from your bank account or via credit card.
Quarterly Payments: For businesses making over $800, quarterly payments are required. You can pay these online or by mail.
Payment Plans: If you owe more than you can pay, California allows businesses to set up payment plans to avoid penalties.

Common Deductions for Small Businesses in California

Deductions are your opportunity to reduce your taxable income and, ultimately, save money. As a small business owner, staying informed about these deductions can make a big difference, especially when using resources like a small business taxes calculator to help you track them.

Let’s break down some of the most common deductions you can claim, and I’ll show you how to maximise these benefits.

Tax Deductions Available for Small Businesses in 2025

Home Office Deduction
If you use part of your home exclusively for business, you might qualify for a home office deduction. The IRS allows you to deduct a portion of your rent or mortgage, utilities, and other home-related expenses.

For 2025, this deduction remains a valuable option for many small business owners in California, especially those working remotely or running an online business.

If you’re unsure how much you can claim, a California business tax calculator can help you estimate the deductions for your home office.

Vehicle Expenses
If you drive your vehicle for business purposes, you can claim either mileage or the actual expenses incurred.

The IRS offers two methods for this deduction: the standard mileage rate (which for 2025 is likely to change) or the actual expense method, where you deduct a percentage of your vehicle costs such as gas, maintenance, and insurance.

With tools like a small business taxes calculator, you can quickly figure out which method gives you the best deduction.

Depreciation on Equipment
Depreciating business equipment is another way to reduce your taxable income. Whether it’s computers, machinery, or office furniture, the IRS allows you to deduct a portion of the cost of these assets each year.

California businesses often rely on tools like small business taxes software to track depreciation accurately, ensuring you maximize this deduction without overlooking any potential savings.

Employee Wages
If you have employees, you can deduct the wages you pay them, which can be a significant deduction for businesses of any size. This includes wages for full-time employees, part-time staff, and even contractors.

Not only can you deduct wages, but you can also deduct contributions to employee health insurance premiums, retirement plans, and other benefits.

Healthcare Expenses
As a small business owner in California, providing health insurance for your employees or yourself as a business owner can lead to substantial savings.

You can deduct premiums for both your personal health insurance and your employees’ health coverage. As a result, your overall taxable income will decrease, leading to a lower tax liability.

Interest on Business Loans
Another common deduction for small businesses in California is the interest on loans used for business purposes.

If you’ve taken out a loan to help with business operations, the interest payments on that loan are deductible.

This applies to both short-term and long-term loans, so make sure to keep track of these expenses throughout the year.

Using a Small Business Tax Calculator

A small business taxes calculator can make this process much easier. These tools allow you to input your income and expenses and quickly estimate your total tax liability, factoring in deductions like home office space, vehicle expenses, and more.

With an accurate estimate, you’ll know exactly where you stand and what you can expect when it comes time to file your taxes.

These calculators are especially useful for California business owners, as they take into account the specific California business tax rate and local tax nuances.

By using a tax calculator, you can make more informed decisions throughout the year, helping you stay ahead of your tax responsibilities.

Key Points to Remember:

The California business tax $800 is an annual minimum franchise tax, so even if you’re in your first year, you’ll still need to pay it.
For many small businesses in California, quarterly tax payments are required to keep up with the state’s tax system.
Utilizing resources like small business taxes software can simplify the filing process, helping you track expenses and deductions year-round.
Keep track of business expenses in 2021 and 2020 as well, especially if you were affected by pandemic-related relief measures, which may still influence your tax filing.

Remember, the goal is not only to reduce your tax liability but also to keep more money in your business for growth and development.

Quarterly Tax Deadlines in California

If you’re running a small business in California, staying on top of your quarterly tax payments is crucial. Missing deadlines can lead to penalties and interest charges, which can add up quickly, leaving you with unexpected costs.

As someone who helps businesses with tax planning, I know how important it is to understand when and how to make your quarterly payments.

Let’s dive into why quarterly payments matter and how you can easily stay on track with your tax obligations.

Why Quarterly Tax Payments Matter in California

Paying taxes quarterly isn’t just a suggestion—it’s a requirement for many small business owners in California.

According to the California Franchise Tax Board (FTB), small businesses must make estimated tax payments if they expect to owe $500 or more in state taxes.

These payments help spread out your tax burden over the year, so you’re not stuck with a hefty bill come tax season.

If you skip these quarterly payments, you’ll face penalties.

For example, you could be hit with a late payment penalty, which is typically 5% of the tax owed, plus an additional 0.5% for every month the payment is late.

The longer you delay, the bigger your penalty grows, so it’s vital to stay on top of these deadlines.

Quarterly Payment Schedule for 2025

Here’s a quick look at the estimated due dates for 2025, so you can mark your calendar and plan ahead:

Q1: April 15, 2025 – Your first payment of the year is due by mid-April.
Q2: June 15, 2025 – Don’t forget to make your second payment by mid-June.
Q3: September 15, 2025 – Mark September 15 as your third payment deadline.
Q4: January 15, 2026 – Your final quarterly payment for 2025 is due in January of the following year.

Staying organized and keeping track of these dates can save you from penalties and interest fees. It’s better to plan ahead than scramble to get everything together at the last minute.

How to Set Up Quarterly Payments

Thanks to technology, setting up quarterly payments has never been easier. You can handle everything online through the California Franchise Tax Board (FTB) website.

The FTB provides a simple, straightforward portal where small business owners can make payments, check their balance, and even set up automatic payments.

Setting up automatic payments is a great way to ensure you never miss a deadline.

You can choose to have the payments automatically deducted from your bank account each quarter, which means you won’t have to worry about forgetting the due dates.

If you’re wondering how to pay online, it’s as simple as logging into the FTB portal, choosing your payment amount, and scheduling the payment for the due date.

Benefits of Setting Up Automatic Payments

Here are a few key reasons why automatic payments can be a game-changer:

No Missed Deadlines: Once automatic payments are set up, you don’t have to worry about forgetting to make a payment. It’s done for you, right on time.
Convenience: You can set it and forget it. No need to manually log in every quarter to make your payment.
Peace of Mind: Knowing your taxes are taken care of gives you one less thing to stress about as a business owner.
Avoid Penalties: By paying on time every quarter, you ensure you avoid late fees and penalties, saving you money in the long run.

By using online services and setting up automatic payments, you can streamline the process and ensure you’re always compliant with the law.

The California Franchise Tax Board website is a great resource to make this as easy as possible, allowing you to focus on growing your business without worrying about missed deadlines.

Small Business Taxes in California: Common Mistakes to Avoid

When it comes to managing small business taxes in California, even the most diligent business owners can fall into traps that lead to penalties.

The California business tax system has its complexities, and missing a detail or two can prove costly.

Let’s break down the most common mistakes I’ve seen, how they can impact your finances, and—most importantly—how you can avoid them moving forward.

Top Mistakes That Lead to Penalties

a. Not Keeping Accurate Records of Income and Expenses
Poor record-keeping is one of the biggest issues small business owners face. Without clear and accurate documentation, it becomes difficult to substantiate your claims if the IRS or California Franchise Tax Board (FTB) audits your business.
What You Can Do:

Use tools like QuickBooks or other small business taxes software to keep everything organized.
Maintain both digital and physical copies of invoices, receipts, and bank statements for at least three years.
Regularly reconcile your accounts monthly instead of scrambling during tax season.

Missing Quarterly Payments and Deadlines
California expects most small businesses to pay estimated taxes quarterly. Missing these deadlines can result in penalties and added interest. This applies to both federal and state tax obligations.

Quarterly Deadlines to Note for 2025:

April 15, 2025
June 15, 2025
September 15, 2025
January 15, 2026

Use a California business tax calculator to estimate what you owe ahead of time and set reminders for these deadlines.
Failing to File the Right Forms
Filing the wrong forms—or not filing them at all—is another frequent issue. Businesses in California often need to file both federal forms (like Schedule C for sole proprietors) and state-specific forms, including the annual $800 franchise tax form for LLCs.
Forms to Watch Out For:
- Form 568 (LLCs): Annual filing for limited liability companies operating in California.
- Form 100 (Corporations): For corporate income tax reporting.
- Form 540-ES: To submit estimated tax payments.
Always confirm the right forms on the official IRS website or the California Franchise Tax Board.

How to Avoid These Mistakes in 2025

Staying ahead of tax issues requires planning and organization. Here’s how you can make the process easier while avoiding the stress:

Use Tax Software or Online Calculators
Invest in reliable small business taxes software that simplifies your calculations. Programs like TurboTax or H&R Block can help, or use a California business tax calculator provided by the FTB for accurate estimates.
Work With Accounting Services or Professionals
Hiring a professional to manage your quarterly and annual taxes can save time and reduce errors. An experienced CPA can help ensure compliance with both federal and state tax laws.
Create a Tax Checklist
Prepare a small business taxes checklist to ensure you’re on top of everything:
- Gather all forms of income (bank statements, invoices).
- Track eligible deductions (business meals, travel, etc.).
- Calculate estimated payments using tools like the FTB’s tax payment page.
- Keep a schedule of filing deadlines.
Keep Up With Changes to California’s Tax Laws
California’s business tax rate and policies can change, so stay updated through the FTB website or news outlets like Forbes and Bloomberg Tax. For example, the $800 minimum franchise tax is currently under legislative review for potential adjustments—watch out for updates in 2025.
Review Your Business Entity Type
The way you structure your business (LLC, corporation, sole proprietorship) can have a significant impact on your tax liabilities. Ensure your entity type aligns with your financial goals and offers tax advantages.

The Best Small Business Taxes Software for California Entrepreneurs in 2025

Finding the right software for managing small business taxes can feel like finding the perfect tool for a job—it makes life so much easier.

California entrepreneurs, whether you’re running a boutique or a tech startup, have unique tax needs, and the right software can simplify the entire process.

Overview of the Top Tax Software Options:

Let’s look at a few options that have made a big difference for businesses across California:

QuickBooks Online: A favorite among small business owners, QuickBooks integrates seamlessly with accounting systems and automates tax calculations. Its user-friendly interface ensures accuracy and keeps you on track for quarterly filings.
TurboTax for Business: Ideal for LLCs and corporations, TurboTax specializes in identifying deductions and credits. It’s like having a tax expert review your filings without leaving your desk.
H&R Block Online: Great for businesses that need a mix of DIY and professional help. If you’re stuck, they offer live tax advice for California-specific issues.

Each software has its perks, but choosing the right one depends on your specific business needs.

Benefits of Using Online Tax Software for Small Businesses:

Saves Time: Forget manual calculations. Most software can handle tax rates, deductions, and credits automatically.
Minimizes Errors: Integrated tools help catch mistakes that might otherwise cost you fines.
Expense Tracking: Many of these platforms integrate with bank accounts and categorize expenses for you, making deductions easier.
Quarterly Filing Made Easy: Whether you’re filing quarterly taxes or making estimated payments, these tools send reminders and provide templates to ensure deadlines are met.

How Much Does an LLC Pay in Taxes in California?

Taxes for LLCs in California can seem straightforward at first, but they come with layers that you’ll want to understand clearly. Let’s break it down so it’s easier to see where your money goes.

Breaking Down LLC Taxes in 2025

The $800 Franchise Tax: Every LLC registered in California pays this flat annual fee. It’s non-negotiable, whether you made a profit or not.
Income-Based Taxes:
- If your LLC’s income is over $250,000, additional fees kick in, ranging from $900 to $11,790, depending on total revenue.
- LLCs with higher revenues contribute proportionally more to state taxes.
Multi-Member LLCs and S-Corp Elections:
- Multi-member LLCs need to file a partnership return (Form 565) and provide K-1 forms to members for their personal filings.
- S-corp election LLCs follow federal and state guidelines, which may help reduce self-employment taxes but come with more administrative work.

Special Considerations for California LLC Taxes

If you operate in multiple states, you might be subject to California’s “doing business” rules, even if your LLC isn’t physically based there.
Use a California business tax calculator to estimate liabilities—it simplifies complex calculations and ensures accuracy.
For deadlines, IRS and California Franchise Tax Board (FTB) resources are your go-to. The FTB’s updated guidance for 2025 ensures compliance and clarity.

With the right tools and knowledge, managing LLC taxes doesn’t have to be overwhelming. Whether it’s the $800 flat fee or income-based rates, understanding where your dollars go helps you plan smarter for the future.

Frequently Asked Questions

Ques. What Taxes Does a Small Business Pay in California?

Ans. Small businesses in California are subject to a variety of taxes. The most common include:

Income Tax: Based on your business structure (LLC, S-corp, partnership, or sole proprietorship).
California Franchise Tax: A minimum of $800 annually, even if your business doesn’t turn a profit.
Sales Tax: If you sell goods or certain services, you need to collect and remit sales tax.

For detailed information, visit the California Franchise Tax Board.

Ques. How Much Does an LLC Pay in Taxes in California?

Ans. LLCs in California pay a $800 minimum franchise tax annually, plus a gross receipts fee if revenue exceeds $250,000. The actual amount depends on your total income.

For more, check out the official LLC Tax Guide from the FTB.

Ques. How Much Do Small Businesses Usually Pay in Taxes?

Ans. The amount varies widely depending on revenue, deductions, and business type. On average, small businesses in California allocate 15-30% of their income for taxes. Using a California business tax calculator can help you estimate your liability.

Ques. When Are Small Business Taxes Due in California?

Ans. Small businesses file quarterly taxes on the following dates:

April 15th
June 15th
September 15th
January 15th (of the next year)

Missing these deadlines can lead to penalties, so mark your calendar or set reminders.

Ques. What Qualifies as a Small Business in California?

Ans. California considers businesses with fewer than 100 employees or less than $10 million in revenue as “small businesses.” However, definitions may vary depending on tax credits or specific programs.

Ques. Can I File Small Business Taxes Online in California?

Ans. Absolutely. California provides online filing options through platforms like:

California Franchise Tax Board e-file: For state taxes.
IRS e-file: For federal taxes.
Third-party software: Options like TurboTax or H&R Block offer user-friendly interfaces.

Choose the platform that works best for your business size and needs.