Business taxes in California are some of the most oppressive of any state. We will summarize the tax requirements for common business types. Note that California also levies personal incomes taxes after the corporate tax (double taxation), but we will focus on the corporate tax. Keep in mind that business operating in California are also subject to federal taxes, but we will focus on state taxes here. To understand federal tax requirements, refer to the “United States” section in the left menu.
501(c)(3) non-profits who have applied for tax-exempt status in California and have obtained an IRS nonprofit Tax-Exempt ID Number is exempt from the corporate tax.
Other details: Note that California has no special capital gains tax. All capital gains are also taxed at the same rates as personal income in California.
As per this source, there is no requirement for private companies to perform audits in the United States. Banks and other private businesses, however, may ask your organization to perform an audit in order to do business with it.
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