California Tax Schedule: Fill & Download for Free

Well, before you decide that you want to start an LLC in California, you might want to do some research to make sure that you REALLY want to do that. Here’s why I say this. The tax advantages may not be what you think they are. According to the California Tax Franchise Board, you may have some additional forms and fees on top of the registration fee. So, if you’re starting a franchise, you’d have to pay an additional $800 each year.Even if you’re not starting an LLC because of a franchise opportunity, you could still have to fill out more tax and other forms that what you’d like. If you do business in California and in other states, you will likely have to set aside part of your income and report it on Schedule R. You’re also going to need to file several other forms. They do have a reduced filing program, but it also requires that you jump through several hoops. To learn more about the filing requirements associated with LLCs in California, visit the California Tax Service Center’s website. Keep in mind that everything on that site is in addition to the requirements on the Secretary of State website to form an LLC in California.Then, depending on your industry, you may need to collect sales tax. To do that, more forms. So, it’s not necessarily as cut and dry as it sounds.It's a lot of paperwork and you may not save as much as you’d think. If you do business in California or in any other state, you’ll likely have to report the income. Then, consider the tax liabilities in your country.As far as how you actually setup the LLC in California, you can do it yourself by going to the Secretary of State website for California and grabbing (and completing) the forms and paying the associated fees. Make sure that you read the documents carefully and properly fill them out. Also, you should keep in mind that LLCs have a limited lifespan. You’re going to have to renew your LLC each year.Your next option is to work with a third-party company who specializes in setting up LLCs for you. Something important here to remember is that unless they are a licensed attorney, they cannot give you legal advice to help you decide if an LLC really is in your best interest. They are completing and filing the forms for you. You have to pay the associated filing fees along with a fee to cover their expenses.Your final option is to work a business attorney who can help you weigh your options. You can get the advice that you need and make sure that an LLC in California would really meet your needs. LawTrades is a legal marketplace that provides access to licensed business attorneys for an affordable fee. Feel free to message me with any questions!

You are self employed for US and California tax purposes and you need to file a US and CA income tax return. Report your income as an independent contractor on Schedule C of Form 1040 for US federal taxes.You can also deduct reasonable and necessary business expenseshttp://rivescpa.co/wp-content/uploads/2012/08/BusinessExpenses.pdf from your income as an independent contractor. Your net profit will be subject to US and CA income tax and self-employment tax.You should not have any tax obligations to the UAE.

Originally Answered: How do people in the San Francisco Bay Area afford to buy a home?I disagree with most of the answers here. If you can afford to make the down payment, you can easily purchase a $1MM home. And if you do the math, 25% of your take-home pay is actually a lot more than you think...I've since realized that owning a home is quite possibly the biggest tax loophole the government offers.The thing you have to remember is that the first 10 years of the loan, you're paying a ton of mortgage interest (loans are front-loaded with interest so that banks still make most of their money if you refinance or otherwise pay off your loan early). Check out this Amortization Schedule Calculator to figure out how much interest you'll pay per year then add your property taxes (about 1.25% of your purchase price per year). All of this is completely tax deductible.What does that mean? Well, effectively it's almost like your take-home pay magically increases. Sounds crazy, right? Let me show you.The numbers I will be using in my calculations assume you're filing married filing jointly, and that you have no other deductions. Even if your circumstances are different, you'll find that your results are not too far off. You can use the Free Federal Tax Calculator that I'm using in my calculations.Let's say, for simplicity's sake that you both make about $180k/year and that you pay about $50k in taxes without a mortgage. Your monthly take home pay is about $11k/month. Let's say you are paying $3k/month rent so you still have about $8k/month after housing expenses.Now let's say that you have an $800k mortgage after you put 20% down (assume 4.5%, which is on the high side, currently), your payments will be about $5k/month ($4k payment + $1k in property taxes) - about $4k of which are going to be tax-deductible. You now have about $50k/year of tax deductions bringing your taxable income down to about $130k and your taxes down to about $30k/year - the government just put $20k/year back into your pocket!! Now we take your $180k and subtract the $30k in taxes leaving you with $150k/year which is about $12.5k/month in your pocket. Realize that this is what people making about $200k/year without a mortgage are taking home. From your $12.5k take-home pay subtract $5k/month for your payment and that leaves you with $7.5k/month after housing expenses - about the same as after paying $3,000 in rent!!The reason this works is because your tax deductions shave off the pay in your highest tax brackets - the money that you make that gets taxed the most (see Rate schedule (federal income tax) and 2014 California Tax Rates and Exemptions) - Your first dollar gets taxed 11% while your 180,000th dollar gets taxed almost 38%!!! When you declare tax deductions, you're reducing the amount of dollars that get taxed at the 38% rate (also why saving in your 401k and IRAs are great ideas).So what about after 10 years, you ask? Well, most likely your salaries have gone up due to inflation and you are still paying yesterday's mortgage with today's dollars (what if you could still buy a gallon of gas for $1.00? That's what you'd be doing 10, 20, and 30 years from now). Likely the value of your home will have gone up - sell the home and use the profit to put a phatty down payment on your next one (all cash offers, anyone?). Or use the equity in your home by refinancing to make another investment. The possibilities are many.Hope this helps!