Is my business income taxable?

Yes, your business income is taxable in California. Depending on the type of business that you are running, there are different tax rates and requirements for collecting and reporting income. Generally, all businesses in California are required to file state and federal income taxes on their earnings. If you are a sole proprietor or a partner in a partnership, all business income should be reported on your personal income taxes. The income is subject to taxation at your individual top tax rate, which can range from 1% to 12.3%, depending on your business income. If you are a corporation, some of your income may be subject to corporate income taxes. In California, corporate income tax rates can range from 1.5% to 12.3% of net taxable income. In addition to the corporate income tax, you may also be liable for a minimum franchise tax, which is a flat rate of $800. Finally, all businesses in California must also pay the Employment Training Tax to California’s Employment Development Department. This is a payroll tax paid by businesses with at least 26 employees in a calendar year. The rate of the tax is 0.1% of the wages paid to all employees in a given calendar quarter. In conclusion, business income is taxable in California. Depending on the type of business, you may be subject to different types of taxes, such as personal income tax, corporate income tax, and the Employment Training Tax.

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Is my business income taxable?

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