Los Angeles
Bookkeeping services in Los Angeles
Outsourced bookkeeping for LA companies, covering California's minimum franchise tax and the city business tax that is charged on revenue.
Outsourced bookkeeping for LA companies, covering California's minimum franchise tax and the city business tax that is charged on revenue.
At a glance
Los Angeles companies carry two charges that have nothing to do with profitability: California's minimum franchise tax, and the city's business tax, which is assessed on gross receipts.
The state's minimum franchise tax is $800 a year, owed whether or not the company earns anything. Newly incorporated corporations and S corporations are exempt in their first taxable year. LLCs are not: that waiver applied only to tax years beginning between 1 January 2021 and 1 January 2024 and has expired.
The Los Angeles City Business Tax is charged on gross receipts, not profit. Businesses operating in the city are required to register, and the registration obligation exists well below the point at which a company feels large. A loss-making company with revenue can owe it.
Both the state minimum and the city business tax are revenue- or existence-based rather than profit-based. A venture-funded company deliberately running at a loss to grow revenue is the exact profile these charges hit hardest, which is why they surprise founders who budget from the income statement.
Daily categorisation and reconciliation, a monthly close with a named accountant, and revenue tracked in the categories the city cares about. Most LA startups are Delaware C-corps, so the Delaware franchise tax is handled alongside the California filing.
We are a remote team with no Los Angeles office, which for outsourced bookkeeping has never been the deciding factor.
Where these numbers come from