CPA for San Francisco Bay Area Clients: Remote Tax, Payroll and Accounting

We are a Naperville, Illinois CPA firm and we serve San Francisco Bay Area clients remotely; we have no office in California. The Bay Area combines startups, large technology employers and professional practices, so the questions we hear most are about equity pay, S corporations and partnerships, California's franchise tax and San Francisco's own business taxes. This page covers the parts that are specific to the region.

California franchise tax and the PTE elective tax

Every corporation incorporated, registered or doing business in California must pay the $800 minimum franchise tax. Pass-through owners should look at the PTE elective tax, available for tax years beginning on or after January 1, 2021 and before January 1, 2031 to partnerships and S corporations. The entity pays California tax on the income of qualified owners, the owners get a credit on their personal returns, and the entity deducts the tax federally, which matters given the federal cap on state and local tax deductions. The election is annual, made on a timely original return, and irrevocable once made. For taxable years 2022 through 2030, the entity is also expected to make a first payment by June 15 of the election year, and a missed or short payment cuts owners' credit by 12.5% of the unpaid amount. Publicly traded partnerships and entities in combined reporting groups do not qualify, and the election should be modeled before you make it.

Payroll in California

California employers pay State Disability Insurance through employee withholding. For 2026 the rate is 1.3%, and since January 1, 2024 all wages are subject to SDI with no wage cap. New employers start at a 3.4% unemployment insurance rate for two to three years, on the first $7,000 of each employee's wages, plus the 0.1% Employment Training Tax. We run payroll that includes these items, with California withholding and new-hire reporting.

San Francisco business taxes

San Francisco voters passed Proposition M in 2024, restructuring the city's business taxes. The gross receipts tax small business exemption rose to $5 million of San Francisco gross receipts, and the Homelessness Gross Receipts Tax applies to businesses with more than $25 million. Annual business registration and gross receipts filings were aligned to the last day of February, with an extension to November 30. Businesses below the exemption may still need to register, and other Bay Area cities have their own business license or tax rules.

Equity pay and tech careers

Employees at startups and public companies commonly receive options or restricted stock. The rules for ISOs, NSOs and RSUs and for qualified small business stock are federal, but moves between states, exercising after leaving California or working remotely from elsewhere can change what California expects. Our equity planning and management work helps before a big exercise, sale or move. See also our page for IT consultants and tech professionals.

The community

The San Francisco-Oakland-Fremont metro area has about 269,000 residents who identify as Asian Indian alone or in combination (roughly 5.8%), and the San Jose-Sunnyvale-Santa Clara area has about 209,000 (10.6%). Santa Clara County is about 11.0% (American Community Survey, 2020 to 2024). We help these families with the US-India tax treaty, India asset reporting and employer payroll.

How we can help

We prepare federal and California returns for individuals, partnerships and S corporations, model PTE elective tax decisions, and handle payroll and books for Bay Area small employers. Our California page has more on state rules. For decisions about your own taxes, speak with a qualified professional.

Frequently asked questions

General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.