Understanding Business Taxes in Walnut Creek 

by | Jan 27, 2023 | Business

As a business owner in Walnut Creek, it is important to understand the taxes you are responsible for. There are a variety of taxes that businesses must pay, most of which are based on where the business is located. To make sure you’re prepared to pay your taxes, let’s look at some of the most common business taxes in Walnut Creek that apply to operating businesses.

State Income Tax 

The California Franchise Tax Board requires all businesses operating in the state to pay state income tax. This includes any type of company, whether it’s an LLC or a corporation. The rate of taxation varies depending on several factors, such as the type of business entity and the amount of taxable income earned. 

Some business owners will need help with taxes and can contact an attorney, such as Weed Law Group, for assistance. 

Sales Tax 

Businesses selling tangible goods or services within California must collect sales tax from customers. This applies to both online and in-store sales. Online retailers who have Nexus with California are also required to collect and remit sales tax. 

The rate of sales tax depends on local and state laws. For example, the rate for businesses operating in Walnut Creek is 9.25%. There may also be additional charges, such as district taxe, that must be taken into consideration when calculating the total sales tax due. 

Property Tax 

Businesses that own real estate or personal property within California must pay property business taxes in Walnut Creek each year. These may include buildings, land, vehicles, equipment, furniture, inventory, etc., depending on how they are used by the business. 

Property tax rates vary by jurisdiction and type. However, property taxes can range from 1% to 2% of assessed value for land and buildings owned by a business in Walnut Creek. Additionally, businesses may be subject to special assessments if they operate within certain jurisdictions or zones, such as a redevelopment zone, where additional fees may apply. 

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