Entity
Entity selection and formation
Tax comparison of C corporations, S corporations, LLCs and partnerships; S elections; conversions and reorganizations. Formation documents are handled by counsel.
Business Tax · Federal and California
Timely, accurate filing is the baseline;
the tax is largely set before the return.
Federal and state income tax compliance, payroll and information reporting, annual planning, and IRS and California FTB representation for California businesses, Chinese-American business owners and U.S. subsidiaries of foreign parents.
Email us first
Submit your topics
Topics first · we confirm scope and fee by email
Email is for initial communication only. Sensitive documents are not sent by ordinary email; the channel is arranged separately, with an NDA where appropriate.
Our View
A company's tax is largely set when transactions occur and are booked; the return reports the result. We work on an annual cycle: a compliance calendar at the start of the year, a mid-year projection, year-end planning, timely returns, and representation when the IRS or FTB writes.
- $800California minimum franchise tax for corporations and annual tax for LLCs
- 9.3%California PTET rate; the election runs through tax year 2030
- $2,000Form 1099-NEC and 1099-MISC threshold from 2026 ($600 before)
- $25,000Initial penalty for a missing Form 5472 by a U.S. corporation at least 25% foreign-owned or a foreign-owned single-member LLC
01How We Work
The Annual Cycle
01Onboarding
What must the business file?
Facts to establishEntity and tax classification, state nexus, employees and contractors, foreign owners and related-party transactions.
DeliverableCompliance calendar
02
Compliance
Is everything timely and accurate?
Facts to establishFederal and state income tax, estimates, payroll and 1099s, sales tax.
DeliverableReturns filed
03
Projection
Where does the year stand?
Facts to establishMid-year profit projection, the PTET decision, S corporation owner compensation.
DeliverableMid-year projection
04
Planning
What can still be done before year-end?
Facts to establishDepreciation and §179, the research credit and §174A, accounting methods, entity structure.
DeliverableYear-end planning memo
05
Representation
How are notices and audits handled?
Facts to establishIRS and FTB notices, examinations, appeals and penalty abatement, under Form 2848 and FTB 3520-BE.
DeliverableResponses and representation
02Key Considerations
Eight Service Areas
Income Tax
Federal and state income tax
Forms 1120, 1120-S and 1065 with K-1s and K-2/K-3; California 100, 100S, 565 and 568; corporate estimates, the $800 minimum franchise tax and the LLC fee.
Payroll
Payroll and information returns
Forms 941/940 and W-2; California DE 9/DE 9C (2026 SDI 1.3% on all wages); reasonable compensation for S corporation owners; the $2,000 Form 1099-NEC threshold.
Sales Tax
Sales tax and multistate
California CDTFA registration and returns (remote sellers with more than $500,000 in California sales in the current or prior calendar year); nexus reviews and apportionment.
Planning
Credits and annual planning
The research credit and §174A; 100% bonus depreciation and §179 (2026 limit $2,560,000); §199A; California PTET; accounting methods (cash method available with average annual gross receipts of $32 million or less over the prior three years).
Inbound
Foreign-owned U.S. companies
Form 5472; related-party transactions and transfer pricing; withholding on payments abroad and Forms 1042/1042-S; FIRPTA; beneficial ownership reporting for foreign companies registered in the U.S.
Representation
IRS and FTB representation
Notices, examinations, appeals and penalty abatement, handled by an EA or CPA as authorized representative.
Transactions
Restructuring, M&A and succession
Stock and asset acquisitions, purchase price allocation and business succession; financings and M&A for technology companies are under Venture & Technology.
03Illustrative Analysis
One $1,000,000 profit: electing California PTET or not
A California S corporation with one California-resident shareholder filing jointly; California-source net income of $1,000,000. The shareholder is in the 37% federal bracket; the business is a specified service, so §199A does not apply; the shareholder's state tax deduction is already limited by the SALT cap.
| No PTET | PTET elected | |
|---|---|---|
| PTET paid by the entity (9.3%) | — | $93,000 |
| Federal taxable income passed through | $1,000,000 | $907,000 |
| Federal income tax saved (37%) | — | $34,410 |
| California credit to the shareholder | — | $93,000 |
Reading the Analysis
The difference is about $34,410. PTET is deducted at the entity level, outside the individual SALT cap, and the shareholder offsets personal California tax with an equal credit. The election is made on a timely filed original return and is irrevocable for the year; missing the June 15 prepayment reduces the credit by 12.5%.
Illustrative only; not a specific client. Simplified — excludes the 1.5% California S corporation tax, limits on the California credit and other state taxes. No outcome is promised.
04Perspective
Professional Background
Planning is tested years later — in an audit, a diligence process or a family event. Every document is prepared to that standard.
CFA®Investment analysis
Earned in securities and investment firms; for Chinese funds, wealth products and policies, the underlying assets, issuer and available information are established first.
CPALicense & signature
A U.S. CPA license: opinions are signed, and models are reviewable and traceable.
EAIRS representation
Authorized to represent taxpayers before the IRS; when cross-border reporting is questioned, the firm responds directly.
J.D.Legal process (candidate)
Pursued after a first-hand U.S. legal proceeding; cross-border succession rests on powers of attorney, notarizations, trust terms and heirship declarations, handled with counsel at the clause level.
The firm sells no insurance or investment products and charges no asset-based fees.
05Engagement
Terms of Engagement
Each level is quoted annually; scope and fee are agreed in writing in advance.
01
Compliance
Annual quote
Federal and state income tax returns, estimates, payroll and 1099 filings, a compliance calendar.
For stable small businesses
Email us firstSubmit your topics02
Compliance and planning
Annual quote
Adds a mid-year projection, the PTET decision, S corporation owner compensation review and a year-end planning memo.
For profitable partnerships and S corporations
03
Advisory and representation
Scoped quote
Entity restructuring, inbound structures and Form 5472, the research credit, M&A, and IRS and FTB representation.
For growth companies and foreign-owned subsidiaries
Initial Consultation
- 1
Topics
Choose Business Tax on the contact page and select the services you need.
- 2
Information
The last two years of returns and financial statements; sensitive documents are not sent by ordinary email.
- 3
Scope & quote
We confirm scope, calendar and annual fee by email.
- 4
Engage & begin
Sign the engagement letter and set the compliance calendar.
06Suitability
Typical Clients
- S corporations, C corporations, LLCs and partnerships doing business in California
- Businesses with employees or many independent contractors
- Businesses selling into multiple states or through marketplaces
- Foreign-owned U.S. companies and U.S. subsidiaries
- Businesses that have received an IRS or FTB notice and need representation
Outside Our Scope
- Bookkeeping only, without tax compliance or planning
Where a consultation shows the matter is outside our scope, we say so and refund the fee.
Calendar first, then planning.
Submit your topics and we will confirm scope, filing calendar and annual fee by email.
Email is for initial communication only. Sensitive documents are not sent by ordinary email; the channel is arranged separately, with an NDA where appropriate.
General tax information as of October 2026; not tax, legal or investment advice for any specific situation. Rules and amounts may change and their application depends on specific facts. Wen Shi is a Certified Public Accountant, an Enrolled Agent and a CFA® charterholder, and a J.D. candidate who does not provide legal advice. The firm gives no investment advice and sells no insurance or investment products. Formation and other legal documents are handled by counsel. Deadlines shown are for calendar-year taxpayers and move to the next business day when they fall on a weekend or holiday.
Business Tax
Book
Business Tax · Federal and California
Timely, accurate filing is the baseline;the tax is largely set before the return.
Federal and state income tax compliance, payroll and information reporting, annual planning, and IRS and California FTB representation for California businesses, Chinese-American business owners and U.S. subsidiaries of foreign parents.
Topics first · we confirm scope and fee by email Email is for initial communication only. Sensitive documents are not sent by ordinary email; the channel is arranged separately, with an NDA where appropriate.
Our View
A company's tax is largely set when transactions occur and are booked; the return reports the result. We work on an annual cycle: a compliance calendar at the start of the year, a mid-year projection, year-end planning, timely returns, and representation when the IRS or FTB writes.
$800California minimum franchise tax for corporations and annual tax for LLCs
9.3%California PTET rate; the election runs through tax year 2030
$2,000Form 1099-NEC and 1099-MISC threshold from 2026 ($600 before)
$25,000Initial penalty for a missing Form 5472 by a U.S. corporation at least 25% foreign-owned or a foreign-owned single-member LLC
An annual cycle of compliance and planning.
Key deadlines for calendar-year California businesses
- January 31Forms 1099-NEC and W-2; $2,000 threshold for payments from 2026
- March 15Forms 1120-S and 1065; California 100S, 565 and 568 (multi-member LLCs)
- April 15Form 1120 and California Form 100; $800 LLC tax (Form 3522)
- June 15California PTET prepayment; LLC fee estimate (Form 3536)
- QuarterlyForm 941 and California DE 9 / DE 9C; federal corporate estimates of 25% in months 4, 6, 9 and 12, California 30% / 40% / 0 / 30%
How We Work
The Annual Cycle
1OnboardingWhat must the business file?
Facts to establishEntity and tax classification, state nexus, employees and contractors, foreign owners and related-party transactions.
DeliverableCompliance calendar
2 ComplianceIs everything timely and accurate?
Facts to establishFederal and state income tax, estimates, payroll and 1099s, sales tax.
DeliverableReturns filed
3 ProjectionWhere does the year stand?
Facts to establishMid-year profit projection, the PTET decision, S corporation owner compensation.
DeliverableMid-year projection
4 PlanningWhat can still be done before year-end?
Facts to establishDepreciation and §179, the research credit and §174A, accounting methods, entity structure.
DeliverableYear-end planning memo
5 RepresentationHow are notices and audits handled?
Facts to establishIRS and FTB notices, examinations, appeals and penalty abatement, under Form 2848 and FTB 3520-BE.
DeliverableResponses and representation
Key Considerations
Eight Service Areas
Entity
Entity selection and formation
Tax comparison of C corporations, S corporations, LLCs and partnerships; S elections; conversions and reorganizations. Formation documents are handled by counsel.
Income Tax
Federal and state income tax
Forms 1120, 1120-S and 1065 with K-1s and K-2/K-3; California 100, 100S, 565 and 568; corporate estimates, the $800 minimum franchise tax and the LLC fee.
Payroll
Payroll and information returns
Forms 941/940 and W-2; California DE 9/DE 9C (2026 SDI 1.3% on all wages); reasonable compensation for S corporation owners; the $2,000 Form 1099-NEC threshold.
Sales Tax
Sales tax and multistate
California CDTFA registration and returns (remote sellers with more than $500,000 in California sales in the current or prior calendar year); nexus reviews and apportionment.
Planning
Credits and annual planning
The research credit and §174A; 100% bonus depreciation and §179 (2026 limit $2,560,000); §199A; California PTET; accounting methods (cash method available with average annual gross receipts of $32 million or less over the prior three years).
Inbound
Foreign-owned U.S. companies
Form 5472; related-party transactions and transfer pricing; withholding on payments abroad and Forms 1042/1042-S; FIRPTA; beneficial ownership reporting for foreign companies registered in the U.S.
Representation
IRS and FTB representation
Notices, examinations, appeals and penalty abatement, handled by an EA or CPA as authorized representative.
Transactions
Restructuring, M&A and succession
Stock and asset acquisitions, purchase price allocation and business succession; financings and M&A for technology companies are under Venture & Technology.
Illustrative Analysis
One $1,000,000 profit: electing California PTET or not
A California S corporation with one California-resident shareholder filing jointly; California-source net income of $1,000,000. The shareholder is in the 37% federal bracket; the business is a specified service, so §199A does not apply; the shareholder's state tax deduction is already limited by the SALT cap.
No PTETPTET elected
PTET paid by the entity (9.3%)
—$93,000Federal taxable income passed through
$1,000,000$907,000Federal income tax saved (37%)
—$34,410California credit to the shareholder
—$93,000How to read it
The difference is about $34,410. PTET is deducted at the entity level, outside the individual SALT cap, and the shareholder offsets personal California tax with an equal credit. The election is made on a timely filed original return and is irrevocable for the year; missing the June 15 prepayment reduces the credit by 12.5%.
Illustrative only; not a specific client. Simplified — excludes the 1.5% California S corporation tax, limits on the California credit and other state taxes. No outcome is promised.
Perspective
Planning is tested years later — in an audit, a diligence process or a family event. Every document is prepared to that standard.
Wen Shi · CPA, EA, CFA®
CFA®Investment analysis
Earned in securities and investment firms; for Chinese funds, wealth products and policies, the underlying assets, issuer and available information are established first.
CPALicense & signature
A U.S. CPA license: opinions are signed, and models are reviewable and traceable.
EAIRS representation
Authorized to represent taxpayers before the IRS; when cross-border reporting is questioned, the firm responds directly.
J.D.Legal process (candidate)
Pursued after a first-hand U.S. legal proceeding; cross-border succession rests on powers of attorney, notarizations, trust terms and heirship declarations, handled with counsel at the clause level.
The firm sells no insurance or investment products and charges no asset-based fees.
Engagement
Terms of Engagement
Compliance
Annual quote
Federal and state income tax returns, estimates, payroll and 1099 filings, a compliance calendar.
For stable small businesses
Email us first Submit your topicsCompliance and planningAnnual quote
Adds a mid-year projection, the PTET decision, S corporation owner compensation review and a year-end planning memo.
For profitable partnerships and S corporations
Advisory and representationScoped quote
Entity restructuring, inbound structures and Form 5472, the research credit, M&A, and IRS and FTB representation.
For growth companies and foreign-owned subsidiaries
How it works
- TopicsChoose Business Tax on the contact page and select the services you need.
- InformationThe last two years of returns and financial statements; sensitive documents are not sent by ordinary email.
- Scope & quoteWe confirm scope, calendar and annual fee by email.
- Engage & beginSign the engagement letter and set the compliance calendar.
Suitability
Typical Clients
- S corporations, C corporations, LLCs and partnerships doing business in California
- Businesses with employees or many independent contractors
- Businesses selling into multiple states or through marketplaces
- Foreign-owned U.S. companies and U.S. subsidiaries
- Businesses that have received an IRS or FTB notice and need representation
Outside Our Scope
- Bookkeeping only, without tax compliance or planning
Where a consultation shows the matter is outside our scope, we say so and refund the fee.
Calendar first, then planning.
Submit your topics and we will confirm scope, filing calendar and annual fee by email.
Email us first Submit your topicsGeneral tax information as of October 2026; not tax, legal or investment advice for any specific situation. Rules and amounts may change and their application depends on specific facts. Wen Shi is a Certified Public Accountant, an Enrolled Agent and a CFA® charterholder, and a J.D. candidate who does not provide legal advice. The firm gives no investment advice and sells no insurance or investment products. Formation and other legal documents are handled by counsel. Deadlines shown are for calendar-year taxpayers and move to the next business day when they fall on a weekend or holiday.