Sales Tax Compliance
California sales tax calculation, filing, and compliance for Los Angeles County businesses. We handle the right rates, timely returns, and organized records so you're ready if the CDTFA ever has questions.
What This Is
California sales tax looks simple until you actually try to do it correctly. The state rate is 7.25%, but that’s just the starting point. LA County has district taxes on top of that. Different cities have different combined rates. The business in Pasadena collects a different rate than the one in Alhambra, even though they’re a few miles apart.
This service handles the ongoing work of getting sales tax right. We determine the correct rates for your locations, track what’s taxable and what qualifies for exemptions, prepare and file your CDTFA returns, and keep records organized in case the state ever asks questions.
Rate Determination
Rate Determination
You need to collect the right amount. That means knowing your combined rate including state, county, city, and district taxes. It means understanding which products or services are taxable and which qualify for exemptions. Get this wrong and you’re either overcharging customers or underpaying the state.
Filing and Remittance
Filing and Remittance
Sales tax returns have deadlines. Monthly, quarterly, or annual depending on your volume. Miss a deadline and penalties start immediately. We prepare your returns, file them on time with the CDTFA, and make sure the amount you remit matches what you collected.
Why This Matters
The California Department of Tax and Fee Administration runs audits constantly. They compare what you reported to industry averages and bank deposits. If the numbers don’t line up, they send an auditor to your business to go through three years of records. Most audits result in assessments because most businesses have made mistakes they didn’t know about.
The common mistakes are predictable. Charging the old rate after a district tax increase. Not collecting on a product you thought was exempt but isn’t. Forgetting to update your registration when you opened a second location in a different jurisdiction. These aren’t things business owners think about every day, which is exactly why they get missed.
The Audit Process
The Audit Process
CDTFA audits aren’t quick. An auditor requests three years of bank statements, register tapes, invoices, and purchase records. They sample transactions, extrapolate findings, and issue assessments. If you can’t document why a sale wasn’t taxable, you owe the tax plus penalties plus interest going back to when you should have collected it.
The Cost of Mistakes
The Cost of Mistakes
Late filing brings a 10% penalty. Underpayment adds interest from the original due date. If the CDTFA determines you were negligent, there’s an additional penalty on top. An audit that finds you undercollected by $500 a month for three years turns into a five-figure assessment after penalties and interest compound.
What Changes
Your sales tax becomes one less thing to worry about. The right rate is applied to the right transactions. Returns go out on time. You know what you owe before it’s due. If a rate changes or a new district tax takes effect, we catch it before it becomes a problem.
When the CDTFA has questions, you have answers. Records are organized by period. Exemption certificates are documented. The backup exists to support what was reported. If an audit happens, you’re not scrambling to reconstruct years of transactions from memory.
Accurate Compliance
Accurate Compliance
Every return filed with the correct rate for your jurisdiction. Taxable and exempt transactions properly classified. Amounts reconciled to your books. You’re not guessing whether you collected enough or worrying about whether you missed something that will surface later.
Audit Readiness
Audit Readiness
If the CDTFA sends a letter, your records are already organized. We can explain how your sales tax was calculated and provide documentation for exemptions claimed. Many audits close with minimal or no adjustments when the records are clean and the methodology is defensible.
LA's Small Business Bookkeeper
The Next Step:
A Short Conversation
Tell us about your business and what you're dealing with. We'll listen, ask a few questions, and give you a clear price for the work.