Supporting a thriving business environment is a big piece of our mission as San Francisco CPA’s. And we’ve seen the challenges every type and size of business has had to endure lately. Yes, there are many challenges to running a successful business in the Bay Area, but resilient business leaders are ready to meet them.
It’s baked into their eco-system. And a fun fact, there have always been economic ups and downs in the Bay Area. Over the past century, the United States has dealt with the Great Depression (1929 – 1933) and the Great Recession (2007 – 2009), with several other moments in between. Yet every time, we bounce back. So, when we are told California is not a great business climate right now, history tells us this is only another ‘stormy moment’ to ride through.
First, let’s look at the tough news. The California Policy Center explains how we got here and what it will take to turn things around. When the article addresses business tax policy, it notes California ranks 48th out of 50 states for its business tax climate. Not only did the article note the tax climate is ‘hostile’ to businesses, but its tax codes are also extremely complex. No wonder businesses are leaving the state. We get it, but in the long run, is that going to be a wise decision?
Stay Strong and Prepare Your Business for the Upswing
Business leaders are survivors at their core. The market changes, customers evolve, and leaders must evolve too. For instance, many businesses closed and reopened to accommodate changes during the pandemic. The California Business Journal explains the impact. Many survived during the pandemic shutdown by pivoting their business plan. One positive business finding was highly valued employees who could work from home were more productive.
Another way to pivot is changing a business structure. When high-net worth individuals use this strategy, it can impact both their personal and business taxes. Determining the right corporate structure, such as an LLC or S Corp, helps to leverage tax savings in the best way. Becoming leaner and smarter with finances can be the key ingredient for sailing through rough economic waters. Consistent business tax preparation allows a well-coordinated plan to help lead the way. Our CPA team handles both business and individual tax filings for the San Francisco Bay Area. Our CPAs are a brain trust for understanding complicated tax challenges for high-income earners. We will create a plan to ensure personal and business tax filings are clean, compliant, and successful.
The question isn’t ‘Is California business-friendly?’ It is ‘how do I handle business tax preparation in California?’ And the answer is working with a top CPA team in San Francisco who are familiar with the ups and downs of California’s business climate.
