Do you conduct business is California? The state is known for a less-than-friendly atmosphere for clients, yet the economy is responsible for $2 trillion in business annually. With 1.37 million businesses and 17 million workers, many companies are choosing to maintain a presence despite California’s state tax system scaring many others away. In fact, another article recently concluded that California is one of the best places for new business. So what’s the real story? It’s probably something in between! The truth is, as the nation’s largest state, California is a hub for commerce, and many businesses can’t afford NOT to be here.
Why do businesses stay?
In a recent article, Joe Vranich, a corporate relocation specialist and harsh critic of the Golden State’s business climate, still says, “This is the single most beautiful state I’ve ever lived in…I have the best quality of life I’ve ever had here. And the weather, I tell people I think this is the weather we’ll find when we get to heaven.”
As a resident myself, I have to agree the state does have an appealing draw. It’s not all weather and beauty, either. There are particular fields California has a stronghold on, such as technology and entertainment. And, the state has started doing what it can to try to entice companies to stay too, by providing some credits and incentives to offset the hefty California state tax costs (see our recent blog about the state’s California Competes Tax Credit). Of course, other states offer credits and incentives as well, so some of that is just California trying to keep up.
Why invest in help?
This is why, as a business, it’s so important to work with a multi-state tax expert. Firms like Miles Consulting Group stay on top of news surrounding credits and incentives in all states, especially California. In addition to us helping you determine whether your company has nexus in a particular state and is liable for certain taxes or fees, we can also help you work within the system to receive the credits and incentives you’re eligible for.
With businesses leaving California in droves (Vranich’s latest report estimates 9,000 companies left or expanded out-of-state), it’s important that business owners and corporate executives make informed decisions – from California state tax planning to considering expanding or relocating out of California, if the draw is there.
Do you need help making informed decisions for your business? From multi-state tax consulting to helping you identify, quantify and substantiate credits and incentives available to your company, we’re here to offer sound advice and insight. Contact us today to learn more!
Miles Consulting Group, Inc. is a professional service firm in San Jose, California specializing in multi-state tax solutions. Our firm addresses state and local tax issues for our clients, including general state tax consulting, nexus reviews, tax credit and tax incentive maximization, income tax and sales/use tax planning and other special projects, including the new California Partial Manufacturer’s Exemption for Sales Tax. To learn more, contact us today at www.MilesConsultingGroup.com.
