How to Stay Compliant with California Tax Laws
A Guide for Creators, Business Owners & Professionals
California has some of the most complex and aggressive tax laws in the country — and if you’re a YouTuber, Shopify seller, Amazon entrepreneur, dentist, or any type of self-employed business owner, staying compliant isn’t just good practice — it protects your income and your business.
At Velin & Associates, Inc., we help individuals and businesses across California navigate the state’s ever-evolving tax landscape. Here’s what you need to know to stay on the right side of the law — and avoid costly surprises.
1. Know What Taxes You’re Responsible For
Depending on your business structure, location, and income sources, you may need to comply with several types of California taxes:
- California personal income tax (up to 13.3%)
- Franchise tax (minimum $800 annually for most business entities, including LLCs and S-Corps)
- Sales and use tax (if selling products online or in-store)
- Employment taxes (if you have staff or contractors)
- City business taxes (e.g. LA’s Gross Receipts Tax or business license fees)
Not sure which apply to you? We can help you identify what you owe and when.
2. Keep Up with Filing Deadlines
Missing deadlines is one of the easiest ways to fall out of compliance. Key dates include:
- March 15 – CA business tax returns (LLCs, S-Corps, Partnerships)
- April 15 – CA personal income tax return (Form 540)
- June 15, September 15, January 15 – Estimated tax payments for self-employed
- Monthly or quarterly – Sales tax and payroll filings
We offer reminders, tracking, and full filing support to keep you on schedule.
3. Accurately Report All Income — Including Online & Passive
California is strict about income earned inside the state, especially from:
- YouTube, TikTok, or other monetized platforms
- Shopify or Amazon stores
- Affiliate marketing
- Rental properties or freelance work
Even if you live outside of CA, if your income is sourced from California (or you reside part-time), you may still owe CA taxes.
Pro tip: Never rely solely on 1099s — your actual income could be higher than what’s reported to you.
4. Maintain Clean, Organized Records
CA tax authorities are known for auditing aggressively, especially high-income or self-employed individuals.
Make sure you:
- Track income and expenses separately from personal funds
- Keep copies of receipts, invoices, and tax forms for at least 4 years
- Digitally archive documents in case of an audit
- Document business purpose for deductions (especially for meals, travel, and home office)
Our firm offers bookkeeping and audit readiness services tailored to small businesses and creators.
5. Don’t Overlook Local Taxes and Licenses
In addition to state-level taxes, many California cities and counties require:
- Business licenses (even for freelancers or online sellers)
- Annual tax filings (such as LA’s Business Tax Certificate)
- Zoning or home occupation permits
These can be easy to forget — but failure to comply may result in penalties or back taxes.
6. Plan Ahead for Tax Law Changes
California tax laws frequently change. In 2025–2026 alone, key developments include:
- Changes to federal deductions that affect CA returns
- New credits and incentives for clean energy or business investments
- Potential new legislation targeting high earners or wealth taxes
We help you stay informed and adjust your strategy as the rules shift.
When to Bring in a Professional
You may be able to DIY your taxes early in your business journey — but once your income or complexity grows, it’s time to work with a California-based CPA who understands both state and local compliance.
We support:
- Creators (YouTubers, TikTokers, influencers)
- E-commerce entrepreneurs (Shopify, Amazon sellers)
- Medical professionals (Doctors, dentists, clinics)
- Local business owners (Salons, tradespeople, freelancers)
Stay Compliant. Keep More of What You Earn.
At Velin & Associates, Inc., we specialize in California tax compliance — from entity setup and ongoing filings to sales tax, audits, and tax planning.
Avoid costly mistakes. Let us help you stay organized, compliant, and confident about your numbers.
Velin & Associates, Inc.
8159 Santa Monica Blvd STE 198/200
West Hollywood, CA 90046
📞 323-902-1000
📧 dmitriy@losangelescpa.org
🌐 www.losangelescpa.org
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.