California, and especially San Francisco, but not only San Francisco, is home to very many start-up businesses. Los Angeles is too, as is the whole of Orange County. However, with the magic of the internet you can have your start-up in Orange County and still work with us at Safe Harbor as a California start-up CPA to ensure you optimize your business from the word go.
It is sad fact of life that we all have to pay tax. Another sad fact is that far too many individuals and businesses here in the Bay Area pay far more than they really should do because they simply don’t understand all the very complicated rules. And there is no reason why they should.
Yet another sad fact (sorry, we’ll get cheerful in a moment!) is that the vast majority of start-ups in San Francisco don’t even think about tax. It is understandable, because as a start-up you haven’t made a cent in profit yet, so why would you think about tax when you don’t have to pay it just yet? You are spending money getting your business off the ground and you haven’t even started generating any income, let alone profit, or you might be generating a small amount already, but not to the point where you have to pay tax. So why would you need a California start-up CPA?
Simpler Than It Sounds: Finding a CPA Firm that Understands Startups
The answer is probably simpler than it sounds. No, you are not in profit yet. That could be a few months away, and even longer before you are generating enough to put you in the tax bracket.
However, there is a very, very good reason why you should talk to a California start-up CPA such as ourselves at Safe Harbor and it is this: if you plan your future well ahead of time, your business will be set up in such a way that when it does become time to pay tax you will only pay the minimum amount.
In a nutshell, that’s it. At some point in the not unforeseeable future you will have to start paying tax (unless your business fails, but you are not going to let that happen) and if you plan for that eventuality now, at the outset, your business will be modeled along the right lines so that when that day arrives you only have to pay the minimum amount that the law requires.
If you think about it that is just plain common sense, but most start-ups are too busy starting up and don’t even think about tax. While that is understandable, it pays to consult us now so that we can set you off in the right direction. It will save you a lot of money in the long run.
Photo credit: MoneyBlogNewz via Foter.com / CC BY