California is renowned for being about as business unfriendly as any state. If you aren’t getting taxed over here, you are getting hit with some odd fee over there. The weather makes up for it, but sometimes you really have to wonder about whether it is all worth it. This is particularly true for small businesses who form limited liability companies only to get hit upside the head with a host of surprises.

The first surprise is one you could only find in California. The LLC is charged an $800 annual fee for the “privilege of doing business in California”. Oh, joy. The fee is due not at the end of your first year, but within a few months of forming your business. Yes, the door is barely open and you are already getting hit with state expenses!

The next surprise comes when you start bringing in some business. The wicked surprise goes by the name “gross revenue tax.” In addition to your $800 annual fee discussed above, you have to pay a tax based on your gross revenues. The tax doesn’t start until you are bringing in at least $250,000 a year, but it is important to remember what we are talking about here. This is a “gross” revenue tax. An example will help explain the significance of this.

Imagine I have a store selling some high priced item. My business plan calls for me to lose money my first three years as business builds up. The first year I bring in $125,000 and lose $10,000 as expected. Then year two rolls around. I bring in $260,000 in receipts and lose another $10,000. Much to my surprise, I own an additional $900 in gross revenue tax. Yes, this is true even though I didn’t make a profit!

So, should you avoid forming a California LLC? No, not really. It is still a great choice. A corporation in California has to pay the same $800 fee, but not the gross revenue tax. As long as you know what you are getting into, the LLC is still worth the financial aggravation.

Tags : California Business, California News, California Travel

Southern California car auctions are very popular in the United States. The cars are fairly cheap and you can have the best value for your money.

If you are looking to save money, then your best option is to go to car auctions in Southern California.  Indeed, it is possible to save a lot when you buy your dream car at car auctions in Southern California because the cars featured in these kinds of auctions have either been seized by the Federal government or repossessed by the lender, the reason why they are being sold at affordable prices. A lot of people are able to save as much as 90% when they buy at car auctions instead of hooking up with a car dealer.

Then again, you may be a bit concerned that being practically second-hand cars, cars being auctioned in Southern California are no longer in good condition. On the contrary, these cars are only slightly used and are in, fact, working very well.

You can always bring along a mechanic with you to take a look at the car of your choice to make sure that it really is in a good condition. It often takes a good eye to determine whether the car is actually worth its price, after all, so asking a mechanic to come along during pre-bid events may be a smart move.

When going to Southern California car auctions, you have to prepare yourself for some stiff competition. Always keep in mind that there are a lot of other people who may be interested in the same car you are bidding on, so you can expect the bid price to go up.

There may also be plenty of paper works that need to be settled before you can actually get the car on the road, assuming that you have won the bid. A lot more money may also be involved to have all the necessary papers in order, so you must be prepared for this as well.

Southern California car auctions are clearly a good way to drive your dream car home. There are many luxury cars being auctioned and you know how expensive these can be if you buy them brand new! Going to auctions like these will really give you the opportunity to make your dream come true.

You can learn more about Southern California Car Auctions and how you can take advantage of them on my site. Take a look at it now.

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