FEDERAL INCOME TAX - California Startups
Federal Income Tax Filing for California Startups.
Fixed Price. No Surprises.
California startup founders need more than a basic tax return -- they need a startup tax accountant who understands Delaware C-Corps, California franchise tax, foreign founders, and the complexity that comes with raising capital. Accountalent covers it all in one flat annual fee. No hourly billing. No forced bundles. No surprises. Just complete federal and state corporate tax compliance, handled for you.
Federal and California state corporate income tax returns
1099 filings and Delaware Franchise Tax Report included
Payroll software setup - Gusto, Rippling, and more
Unlimited tax questions, no hourly clock
Support for foreign founders and international subsidiaries
Discounted pricing for newly incorporated startups
No commitment. Pay after filing - not before
FEDERAL INCOME TAX
$2,450
per year - flat fee
✓ Federal federal income tax return (Form 1120)
✓ California state income tax return
✓ 1099 preparation and filing
✓ Delaware Franchise Tax Report
✓ Payroll software setup (Gusto, Rippling)
✓ Bookkeeping Consultation
✓ Unlimited tax support, year-round
✓ Foreign subsidiary and foreign founder support
No commitment. No hourly billing. Just answers.
What is Included
Everything Your California Startup Needs for Tax Compliance - In One Flat Fee.
Most California startups incorporate in Delaware but operate in California - which means you have filing obligations in both states. Add foreign founders, multi-state payroll, or investor distributions and the complexity compounds fast.
We handle the full picture. One fixed price, no hourly billing, and unlimited support throughout the year. Every question you have between January and December is already covered.
Federal Federal Income Tax Return (Form 1120)
California State Return + $800 Franchise Tax
Delaware Franchise Tax Report
1099s, Payroll Setup, Bookkeeping Consultation
Unlimited Year-Round Tax Support
Where We Serve
Federal Income Tax Services Across California
We work remotely with startups across California. Select your city for location-
specific information, local ecosystem context, and California tax guidance tailored to your market.
Now Serving
Riverside
Inland Empire startup hub. Home to ExCITE Riverside, UC Riverside, and a growing cleantech and AI ecosystem.
Coming Soon
San Diego
Biotech, defense tech, and SaaS hub. Home to Techstars San Diego and UC San Diego spin-offs.
Coming Soon
Los Angeles
Media tech, fintech, and consumer startups. One of the largest startup ecosystems in the U.S.
Coming Soon
Sacramento
State capital and growing tech hub. Home to a strong govtech, cleantech, and agtech startup scene.
Coming Soon
San Francisco
AI, SaaS, and deep tech. Home to Y Combinator and the highest startup density in the U.S.
California-Specific
Three Tax Traps Every California Startup Founder Needs to Know
California is the most aggressive state in the country when it comes to taxing corporations.
These are the situations we see most often and the ones that cost founders the most when they get them wrong.
01
The $800 Minimum Franchise Tax Nobody Warned You About
Every California corporation - including Delaware C-Corps registered to do business in CA - owes the FTB $800 per year minimum, even pre-revenue. Miss it and you owe penalties on top.
02
Filing Late With Foreign Founders Can Cost $25,000+
Foreign founders trigger additional IRS reporting. Filing late results in automatic penalties starting at $10,000 per form. Filing on time also unlocks up to $500,000 in refundable R&D credits.
03
The CA Water's Edge Election Most International Founders Miss
Without a Water's Edge Election, California can tax your startup's worldwide income - not just U.S. income. Most internationally-founded startups never file it. We make sure you do not miss this one.
Common Questions
Federal Income Tax Questions
Do California startups need to file both federal and state income taxes?
Yes, and most founders are surprised to learn they have obligations in two places simultaneously. If your startup is incorporated in Delaware (which most VC-backed startups are) but operating in California, you file a federal corporate return (Form 1120) with the IRS AND a state return (Form 100) with California's Franchise Tax Board. On top of that, California charges an $800 minimum franchise tax annually, regardless of whether your startup turned a profit. Missing either filing triggers penalties that compound quickly.
What does the $2,450 flat fee actually include?
Everything your startup needs for annual tax compliance - federal corporate income tax return (Form 1120), California state income tax return, 1099 preparation and filing, Delaware Franchise Tax Report, payroll software setup (Gusto, Rippling, and others), bookkeeping consultation, and unlimited tax support year-round. No hourly clock. No surprise invoices for one-off questions between January and April. One fee, fully covered.
How much does corporate income tax cost for a startup in California?
The federal corporate tax rate for C-Corps is a flat 21% on net income. California adds its own corporate income tax at 8.84% of California-sourced net income, plus the $800 minimum franchise tax. Most early-stage startups operating at a loss pay only the $800 minimum to California - but the filing obligation exists regardless of profitability. The cost of filing itself depends on who handles it. Our fixed fee is $2,450 per year, with no hourly billing and no binding contract.
What is the Delaware Franchise Tax and do California startups have to pay it?
Yes. If your startup is incorporated in Delaware - which the vast majority of VC-backed startups are -- you owe Delaware an annual franchise tax even if you have zero operations or revenue there. Delaware uses two calculation methods (Authorized Shares Method and Assumed Par Value Capital Method), and the difference between them can be thousands of dollars. Most founders get hit with an inflated bill using the default method when the alternative method would cost a fraction of that. This is included and handled in our flat fee.
Does a foreign founder or international subsidiary change the tax filing requirements?
Significantly. Foreign founders trigger additional IRS reporting obligations, including Form 5472 if the startup has foreign ownership above 25%. Missing this form alone carries a $25,000 penalty per filing. International subsidiaries add another layer of cross-border compliance. We specifically support foreign founders and companies with international subsidiaries -- it is included in the same flat fee, no upcharge.
When are corporate tax returns due for California startups?
Federal corporate returns (Form 1120) are due March 15 for calendar-year C-Corps, with an automatic extension available to September 15. California's Form 100 is due April 15, also extendable. The Delaware Franchise Tax Report is due March 1. Miss the Delaware deadline and penalties start immediately. Miss California's franchise tax payment and interest compounds on top of the penalty. We track all of these deadlines for you as part of the annual service.
Get Started
One Free Call Tells You Exactly Where Your Startup Stands.
We review your corporate structure, state registrations, and filing requirements; and give you a straight answer on what you need and what it costs. No commitment, no hourly billing.
$2,450/year flat fee. Pay after filing. No binding contract.