Businesses in Los Angeles can be taxed in a variety of ways. They may be taxed on their gross receipts, on a flat rate, or taxed based on their assets, property, equipment, or number of employees. No matter how a business is taxed, one thing that is usually true for business owners is figuring out how to keep more of their bottom line, and part of that is looking at ways to take advantage of tax benefits that may be available. After all, the more capital on hand, the more a business can put towards operations.
In the city of Los Angeles, business owners would be wise to look into the tax exemption programs that exist, which may be applicable and helpful in minimizing their tax burden.
The Los Angeles business litigation law firm at Leiva Law Firm has decades of experience assisting businesses to protect their legal rights, and the firm also provides effective and strategic business litigation services. If you have a legal dispute arise that affects your business, or if you need assistance with another legal matter relating to your business, the Leiva Law Firm can help.
Los Angeles Tax Exemption Programs for Businesses
Depending on the type of business you have, there may be tax programs and incentives suited to your industry and profession. Knowing more about what tax advantages may be available to your business can help you keep more money in-house to be used for critical operational functions.
Individuals who engage in creative arts that earn $300,000 (but not more than $300,000) in gross receipts may qualify for a tax exemption. The tax benefit is for individual creative artists registered as businesses that file a renewal form on time. It can only be used for income that was related to creative art activities.
Utility User’s Tax Exemption
Seniors and disabled individuals may be able to get a tax break on utility bills. These individuals that have a residence in Los Angeles and have utility bills in their name may be able to get an easement on their tax responsibilities.
Charitable and Religious Exemptions
Both state and federal laws provide pathways that allow non-profit organizations and religious entities to have tax exemptions. The Internal Revenue Service Section 501 specifies the rules for federal exemption, while California state’s Section 23701 allows for these benefits.
Small Business Tax Exemptions
Registered small businesses whose non-taxable total receipts are no more than $100,000 and that also file their renewal on time can benefit from a tax exemption.
You may qualify for one of the tax exemption programs in Los Angeles listed above. If so, doing some research or talking with a tax professional can help you save on your tax bill. The laws, though, are always changing, so staying up to date on what is current and what programs are no longer available can be quite advantageous.
Talk with an Attorney at Leiva Law Firm Today
Running a business is a complicated and highly involved job. Anything a business owner can do to reduce their liabilities can benefit their operations.
For assistance with all of your business legal needs, the Leiva Law Firm is here for you. Please call (818) 519-4465 to schedule a free consultation to discuss your situation and requirements.