Specialized tax planning, R&D credits, and CFO services for venture-backed startups in LA, Santa Monica, and Silicon Beach. Navigate California's high tax rates while maximizing federal and state R&D credits. Serving entertainment tech, SaaS, fintech, and content platforms.
Silicon Beach has emerged as a major tech hub, competing with Silicon Valley. While LA startups face California's highest-in-nation taxes, they also benefit from generous R&D credits and unique opportunities in entertainment tech. We help LA founders navigate this complex landscape.
Maximize federal (20%) and California (15%) R&D credits. LA entertainment tech and SaaS startups average $180K-$550K in combined annual credits. Unlike many states, CA credits can be sold to profitable companies for cash if not immediately usable.
LA's unique position at the intersection of tech and entertainment creates specialized accounting needs. We understand content licensing, streaming revenue, creator economics, and production accounting for tech-enabled entertainment companies.
California has the nation's highest state income tax (13.3%) and corporate tax (8.84%), plus LA city taxes. Strategic planning is essential to minimize your burden while staying compliant with aggressive FTB enforcement.
LA's VC ecosystem (Upfront Ventures, Mucker Capital, Crosscut) expects institutional-grade financials. We deliver monthly GAAP reporting, detailed metrics, and board packages that support successful fundraising and growth.
Like SF, most LA startups incorporate in Delaware while operating in California. We expertly manage dual-state compliance, ensuring you meet Delaware franchise tax and California FTB requirements without overpaying.
California doesn't recognize QSBS (you'll still pay 13.3% state tax on exits), but federal QSBS can save 20%+ on the federal side. We provide 409A valuations and structure equity to maximize available tax benefits despite CA's high rates.
California has the nation's highest taxes: 13.3% personal income tax, 8.84% corporate tax, plus LA city business tax (up to 1.0% on gross receipts). Without strategic planning, these rates can devastate startup economics and founder wealth.
Our Solution:
LA's entertainment tech companies face complex revenue recognition: streaming subscriptions, content licensing, creator payouts, and marketplace transactions. ASC 606 compliance requires specialized expertise to avoid costly errors.
Our Solution:
Los Angeles charges a gross receipts tax on businesses operating within city limits. Rates vary by industry (0.4%-1.0%), and determining your classification and proper apportionment can be confusing. Mistakes lead to penalties.
Our Solution:
LA startups scaling nationally face complex sales tax nexus issues. California's 7.25%-10.25% sales tax rate is among the highest, and SaaS products are often taxable. Economic nexus in other states compounds complexity.
Our Solution:
From Santa Monica's beachside co-working spaces to Playa Vista's corporate campuses and DTLA's tech hub, we serve innovative startups throughout the greater Los Angeles area.
Santa Monica
Venice Beach
Culver City
Playa Vista
Downtown LA
West Hollywood
Westside
Santa Monica, Venice, Marina del Rey, Playa Vista
Mid-City
Culver City, West LA, Beverly Hills
South Bay
El Segundo, Manhattan Beach, Hermosa Beach
Pasadena
Pasadena, Glendale, Burbank
The Challenge:
An 18-person creator marketplace platform in Venice Beach was using a traditional CPA who didn't understand entertainment tech. They missed R&D credits on their recommendation algorithm, had improper revenue recognition for creator payouts, and faced an LA city business tax audit.
Our Solution:
Results:
"SpryTax understands both the tech and entertainment sides of our business. They found R&D credits we didn't know existed, fixed our accounting, and saved us from a costly audit. Game-changing for our business." - Co-Founder & CEO
Join 110+ Los Angeles startups saving an average of $200K+ annually through R&D credits and strategic California tax planning. Get a free consultation today.
California offers a 15% R&D credit in addition to the 20% federal credit (35% total). The CA credit can offset state tax liability or be sold to profitable companies for cash through the CA credit transfer marketplace. A typical 15-person LA tech startup with engineers earning $130K average can claim $150K-$250K in combined federal and state R&D credits annually.
Los Angeles charges a gross receipts tax on businesses operating within city limits. Rates vary by business category (0.4%-1.0%). Tech companies typically fall under "Professional, Scientific, Technical Services" (0.4-0.5%). The tax is based on total gross receipts apportioned to LA. There's a $100 minimum annual tax and various exemptions for small businesses.
No, California is one of few states that doesn't recognize QSBS. While you can exclude up to $10M in federal capital gains (saving 20%+), California will still tax those gains at 13.3%. However, the federal savings alone is massive—on a $10M exit, QSBS saves you $2M+ in federal taxes. We structure equity from day one to maximize this benefit.
Entertainment tech companies must follow ASC 606 revenue recognition rules. For creator marketplaces, you need to determine if you're the principal (record gross revenue) or agent (record net commission). Content licensing requires identifying performance obligations and recognizing revenue as content is delivered or licensed. We have deep expertise in entertainment tech accounting and can ensure compliance.
Yes, California considers SaaS taxable as a digital product transfer. You must collect sales tax (7.25%-10.25% depending on location) from California customers. Additionally, you may have obligations in other states based on economic nexus thresholds ($500K in CA, varies by state). We help set up proper sales tax compliance and integrate automated solutions like Avalara.