California Tax Attorney for Small Business
Tax strategy for a California-resident operator runs through a state-specific framework that overlays every federal tax decision, from the Franchise Tax Board minimum to the residency rules for high earners.
Get Started →The California framework that overlays every federal decision.
The Franchise Tax Board’s $800 minimum on every entity. The 1.5 percent state-level franchise tax on S-corporations on top of the minimum. The Pass-Through Entity Tax election that California recognizes under recently enacted provisions, which can produce meaningful planning value where federal SALT-cap limitations would otherwise apply. The state’s residency rules for high-income individuals considering relocation to a no-income-tax state. And the state-specific tax overlay on every M&A transaction sourced through California operations.
DELINA.ESQ provides California tax counsel for residents and businesses with California nexus, applying Big Four Mergers and Acquisitions Tax depth to the California-specific overlay that determines what the resident or business actually owes after federal and state combined. For the broader national tax practice, see Tax Strategy.
What California-specific tax counsel covers.
Multi-State Residency Planning
California taxes residents on worldwide income at one of the highest marginal rates in the country. The firm runs the residency analysis between California and the no-income-tax states and structures the relocation and presence-tracking framework so the change of residency holds up under audit, addressing the apportionment of California-source business income that remains California-sourced.
The Pass-Through Entity Tax Election
California recognizes a PTET election that allows a pass-through entity to pay the state tax at the entity level, producing a federal deduction that bypasses the federal SALT-cap limitation at the individual level. The election is annual and irrevocable for the year, with specific timing and quarterly estimated payment obligations the firm runs at the engagement-letter stage.
The 1.5 Percent S-Corp Franchise Tax
California recognizes the federal S-corporation election but imposes its own state-level 1.5 percent franchise tax on net income, with the $800 minimum applying regardless of profitability. The firm models the federal-and-state combined position before recommending an election and declines where the federal savings do not exceed the state-level cost.
Sales-Tax Nexus & Apportionment
California’s sales-tax framework applies to in-state sellers and to out-of-state sellers meeting the post-Wayfair economic-nexus thresholds. For multi-state operators, California-source income is determined under California’s apportionment rules, which differ from the rules other states apply.
The overlay across the full lifecycle of tax decisions.
At formation, entity choice between LLC, corporation, and partnership, with the California-specific franchise-tax overlay informing the federal tax election. At growth, the qualified business income deduction analysis, retirement plan strategy, charitable giving structures, real estate strategies including cost segregation and the Augusta Rule, equity compensation tax treatment, and multi-state residency planning. At funding rounds, the qualified small business stock analysis under the post-OBBBA framework. At exit, the M&A tax structuring with the California-specific overlay on each transaction structure.
For California-resident operators with foreign operations or owners, the international overlay covers outbound transfer analysis, FIRPTA on inbound real-estate transactions, treaty positions under the Limitation on Benefits framework, and transfer pricing. For the M&A tax overlay specifically, see California M&A. Detail at Fees.
What most people want to know.
What does the firm actually deliver?
Most California tax engagements produce a written Tax Strategy Memorandum addressing the client’s entity structure, income mix, retirement contributions, charitable-giving posture, real estate holdings, multi-state activity, residency posture, and any planned transactions. The memorandum identifies the positions currently in place, the planning opportunities the current structure does not capture, and the specific changes the firm recommends, with year-by-year savings projected against stated assumptions and audit considerations flagged for every position. Most clients save between $10,000 and $100,000 annually after implementation. The memorandum runs 15 to 40 pages depending on complexity.
Does the firm prepare tax returns?
No. The firm does not prepare returns, reconcile books, or file extensions. Each engagement coordinates with the client’s CPA on the implementation of the recommended structure, and where the client does not yet have a CPA, the firm refers to CPA partners with whom it works regularly. The tax attorney’s role is upstream of the return; the CPA’s role is downstream. The two are complementary.
What does a California tax engagement cost?
A focused single-strategy memorandum (such as a stand-alone S-corporation election analysis with the California overlay or a residency planning analysis) runs in the low-to-mid four figures. A comprehensive multi-strategy memorandum covering entity structure, retirement, charitable giving, real estate, QSBS planning, and the California-specific overlay runs in the mid-four to low-five figures. M&A and international tax engagements are billed hourly. Each engagement is committed in writing before any work begins.
This page is general guidance, not legal advice on any specific matter. Reading it does not create an attorney-client relationship. Attorney-client relationships are formed only on a signed engagement agreement.
Send what’s in front of you.
The recent return, the entity structure as it stands, the pending transaction, the residency question, the question your CPA could not answer. The firm responds within one business day with a preliminary read from the structural side.
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