Mo' money, mo' taxes. "Business Tax Certificate" in LA

BluAffiliate

BluAffiliate

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Sep 6, 2009
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So I already pay state taxes, federal taxes, taxes to the Franchise Tax Board, and now I just got a letter from the "office of Finance" in Los Angeles asking me for more taxes. It's just getting a little ridiculous here, but I have 20 days to respond or I will face "civil and/or criminal charges".

My options are:

1.) Pay my taxes like a good little sheep.
2.) "If you believe you shouldn't be subject to this ... [tax] ... please provide a written response as to why you feel this way."
3.) If your business isn't located in Los Angeles please provide the current address.
4.) If you are already registered please provide a copy of your tax certificate.


Anyone have any insight on this?

PS. I could easily say my business is conducted out of my parent's place in Norcal without a problem, this seems too easy. However, I might go with option #2 and say my business is entirely digital and has nothing to do with the city that I live in.

Dullspace where you at?
 


Yes - Im in LA also -

My advice- move

but on a serious note - how is your business registered? Is it registered ? etc. that will determine what you should do.

PM can give you advice
 
peteg00 said:
Yes - Im in LA also -

My advice- move

but on a serious note - how is your business registered? Is it registered ? etc. that will determine what you should do.

PM can give you advice
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I'm a LLC registered at my office on Wilshire.. can't really hide from that.

And yeah I'd love to move out of this place but hey.. I love LA.
 
you owe the $. i'm in LA too - its a cost of doing business here... internet/new media companies have to pay business tax on gross receipts. they did a rate rollback earlier this year for internet companies so you do get taxed at the lowest rate on the books.
 
Yea I remember my accountant mentioning having to register your business with the city of Los Angeles and pay city taxes on it. Can I ask what percentage they are charging? I will probably have to pay this as well.
 
Cool1g said:
you owe the $. i'm in LA too - its a cost of doing business here... internet/new media companies have to pay business tax on gross receipts. they did a rate rollback earlier this year for internet companies so you do get taxed at the lowest rate on the books.
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Getting taxed on gross receipts instead of profit kinda sucks, but it's just a part of doing business - my city in VA does the same thing.

Not sure how LA's code is structured, but Arlington VA has different rates for different professions - if you call yourself an "advertising agency or firm", the rate is 0.20% (just have to spend more than 50% of gross receipts on media buys for "clients"), but the rate for "marketing services" is 0.36%. The numbers are pretty small to begin with, but on huge volume, it makes an impact. Short of moving, look into what you can do to get the lowest tax possible. If that rate rollback applies, sounds like that's probably all you can do.
 
I got one from those bastards a few years ago. I told them I was doing biz in the OC and gave them my parents' address. They stopped bothering me. But I think you're screwed because of the LA- based LLC. I also stopped using my LA address for taxes. They get income tax info from the state they use to nail you.

I wouldn't get too attached to LA. In about 4 years, something like 1 out of every 4 dollars will go to LA worker pensions. LA taxes are going nowhere but up. I've had it with this city. I'm out next month. Moving here until I leave the state:

http://econdev.santa-clarita.com/Index.aspx?page=3
 
Man that sucks. I don't even have state taxes.

You have a digital business. Why don't you just shut down the LLC and start a new one out of state or at least outside of that insane city? I'm guessing that it's because you would still owe the tax based on the income passing through to you in LA?

I would think there'd be a way to move the income or at least a lot of the taxable money (gross receipts for advertising costs) out of state with a digital incorporated business.
 
doing business within LA city limits is retarded / pricey.

it's a good thing big media companies went to bat a year or two ago when they tried to set the tax level at some RIDICULOUS percentage based on a 'mis' classification.

Fuck LA- I try to never cross the county line from Orange County - set FOOT over that line and everything gets shitty. Roads, taxes, people, etc.

Sucks though, I'm still bitter that the CA LLC supplemental fee is based on GROSS revenues. Yeah- I love paying CA not only the $800 LLC fee yearly but also an additional $6k.

$8600 versus less than $200 in many other states. Oh well, pay to play in CA.
 
Vancouver has been feeding off LA expatriates for years.

"Oh hi, you're new here? From the U.S? Oh, which part of California?"
 
bmorecali said:
is this just the city of la or all la county
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each city makes their own rules if they want to charge a gross receipts tax... most do - i know West Hollywood does as i looked into moving my company domicile there but the difference in tax was so little it was not worth the bother...
 
Jesus. So this is for the CITY of LA or LA County? I'm down in the South Bay, not in the city itself..

I'm in China now but down for an LA Meetup when I return around Nov 5... Santa Monica Barney's Beanery or something?
 
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