The questions

Start With the Question You Have

Twelve questions in four topics. Every answer opens with a short version.

Choosing a CPAHow Do I Choose a CPA in Los Banos?Start with recommendations, then check every name on the California Board of Accountancy’s License Lookup. Meet two or three candidates, ask about…Read the answer →Choosing a CPAWhat Is the Difference Between a CPA, an Enrolled Agent and a Tax Preparer?All three can prepare your return for pay if they have an IRS preparer number. CPAs and enrolled agents, like attorneys, can…Read the answer →Choosing a CPAHow Do I Check a CPA’s License in California?Search the CPA or firm by name or license number on the California Board of Accountancy’s License Lookup. It shows whether the…Read the answer →Choosing a CPAWhat Should a CPA’s Engagement Letter Say, and What Should I Bring?The California Board of Accountancy says an engagement letter should cover the scope of work (what the CPA will and won’t do),…Read the answer →Farm TaxesWhen Do Farmers Pay Estimated Tax?If at least two-thirds of your gross income comes from farming, you are a qualified farmer for federal estimated tax. For 2025…Read the answer →Farm TaxesWhat Federal Payroll Taxes Apply When I Hire Farmworkers?Cash wages for farmwork are subject to social security, Medicare and federal income tax withholding once a worker earns $150 in the…Read the answer →Farm TaxesWhat Farm Records Should I Keep for My CPA?Keep a running summary of farm income and expenses plus the documents behind it: sales slips, invoices, receipts, payroll and records of…Read the answer →Small BusinessHow Does Self-Employment Tax Work?If you work for yourself and have net earnings of $400 or more, you owe self-employment tax on top of income tax:…Read the answer →Small BusinessHow Long Should I Keep Tax and Business Records?The IRS’s general rule is three years after you file, but several situations need longer: six or seven years in some cases,…Read the answer →Small BusinessDo I Need a Seller’s Permit in California?Generally yes, if you sell or lease tangible goods in California, even temporarily. The permit comes from the California Department of Tax…Read the answer →California TaxesWhen Are California Estimated Tax Payments Due?California splits estimated tax into four payments of 30%, 40%, 0% and 30%. For the 2026 tax year they are due April…Read the answer →California TaxesWhat Does a California LLC Owe Each Year?Every LLC organized or doing business in California owes an $800 annual tax to the Franchise Tax Board, even with no income,…Read the answer →

Glossary

The Words Your CPA Will Use

Short definitions of the terms that come up when you work with a CPA in California. Where a term has its own answer on this site, the definition links to it.

Open the glossary →
  • Annual tax (LLC) The $800 tax every LLC organized or doing business in California pays to the Franchise Tax Board each year, due even if the LLC does no business, until it is cancelled.
  • CPA Certified public accountant: a professional licensed by a state board of accountancy after passing the Uniform CPA Examination and meeting education and experience requirements.
  • Estimated tax Tax paid during the year on income that has no withholding, such as self-employment or farm income.
  • Form 568 The return a California LLC classified as a partnership or disregarded entity files with the Franchise Tax Board.
  • Qualified farmer For federal estimated tax, a person with at least two-thirds of gross income from farming in the current or prior year.
  • Schedule SE The form used to figure self-employment tax on net earnings of $400 or more.

Before you ask

What Working With a CPA Looks Like Here

Five things that shape how people in Los Banos and western Merced County use a CPA.

Many returns mix several kinds of income

A household in this part of the Central Valley may have wages from a school or a packing house, a small almond or dairy operation, a rental and a side business, all on one return. Each piece follows its own rules: Schedule F for farming, Schedule C for a business, payroll rules for anyone you hire. Part of what you pay a CPA for is keeping those pieces straight.

Farm income changes the calendar

Farmers who earn at least two-thirds of their gross income from farming can skip federal quarterly payments if they file and pay by early March, or make one payment in January. That single rule shapes when many local farm families meet their CPA, and why the first months of the year are the busiest.

California adds its own layer

The state has its own estimated tax schedule, heavier in the first half of the year than the federal one, an $800 annual tax on every LLC and a separate agency for sales tax. A CPA who works with California clients every year will keep those deadlines on the calendar for you.

Credentials differ more than people expect

Anyone with an IRS preparer number can prepare a return for pay. CPAs, enrolled agents and attorneys can also represent you in audits and collection matters, and in California most other paid preparers must register with the California Tax Education Council. Knowing the difference is the first step in choosing.

The best time to choose is before you need one

The California Board of Accountancy advises choosing a CPA when you start a venture or plan ahead, not in a crisis. That gives you time to check a license, ask questions and gather records before a deadline forces the decision.

Quick answers

Questions People Ask First

Q.Is this site a CPA firm?

A.No. It is an independent guide. It does not prepare returns or recommend firms.

Q.How do I check a CPA’s license?

A.Use the License Lookup on the California Board of Accountancy website. It shows whether the license is current and any discipline or restrictions.

Q.Do I need a CPA or is a tax preparer enough?

A.It depends on how complex your situation is and whether you may need someone to represent you before the IRS. CPAs, enrolled agents and attorneys can; most other preparers cannot.

Q.What should I get in writing?

A.An engagement letter that says what the CPA will and won’t do, who does the work, what you are responsible for, the cost and the timeline.

Q.Do farmers have to make quarterly estimated payments?

A.Not if they qualify as farmers under the two-thirds rule and file and pay by the early-March deadline, or make one January payment instead.

Q.When are California estimated payments due?

A.In four installments of 30%, 40%, 0% and 30%, in April, June, September and January. The split differs from the federal one.

Q.Does a California LLC owe tax if it made no money?

A.Yes. The $800 annual tax is due every year until the LLC is cancelled.

Q.How long should I keep tax records?

A.Generally three years, longer in some situations, and at least four years for employment tax records.