The State of California recently sent out tax demand letters to people, en masse, which needs a response within the next 30 days. 

But before you even think of crashing out California in your list of where to do business, you might want to reconsider because it’s just a cost of doing business, not a reason not to do business. 

Why Doing Business in California is a Great Option

While 12% of Americans live in California, the state contributed 14.6% to the GDP in 2018. California's economy is now the fifth biggest in the world and has overtaken the United Kingdom. That means California's economy is greater than the whole of the UK. 

So leaving California out because you're frustrated or intimidated or think that it's too expensive is something you have to weigh in on because you could be leaving profit on the table.

Why You Need to Read the Notice

It will relieve your stress especially once you determine there's no requirement actually needed. Or you may just need confirmation on what you think you should do. 

Moreover, the IRS just wants information. They’re going to assume that you owe them and it's your responsibility to prove them wrong. In fact, there are so many times where it ends up that you shouldn't pay what they're saying you owe. You just have to respond and explain why you don't owe them.

You don't get to opt-out of this, you don't get to unsubscribe. You can ignore it. But eventually, it will still be there. It will not go away. It will keep impacting you and how you make decisions in your business. 

So just toughen up when it comes to matters related to your finance and tax because that's impacting your ability to grow and to grow profitably. It’s all about a mindset shift because the tax is here, California is here, and this is just stuff you're going to have to deal with.

If you want to learn more about why doing business in California is taxing, check out 031: Doing Business In California Is Taxing

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