California Spotlight #131
California Bulletin — July 9, 2025 edition
California Tax Credit Alert: Q3 Remote Worker Claim Deadline Approaching
California's Employment Development Department (EDD) is still accepting Q3 tax credit claims for businesses employing remote workers in-state.
If your company has:
W-2 employees working remotely within California
Fewer than 100 total employees
Under $5M in gross receipts last year
…you may be eligible for a $1,250 per employee refundable tax credit through the Home-Based Jobs Act, which was expanded this April.
⏳ Claim deadline for Q3: August 15, 2025
📄 How to file: edd.ca.gov → Employer Services → Tax Credits → HBJA Form 642-R
💡 How California Consultants Can Convert Cold Leads Without Ads
Skip the ad budget. A new framework—"reverse value offer loops"—is converting better than traditional cold emails.
Here’s how it works:
List 20 local companies in your niche using Clutch, Alignable, or Yelp.
Build a micro-audit in Notion or Google Docs (2–3 slides max) showing one problem they didn’t know they had.
Use the subject line: Saw this on your site — thought it might help.
Why it works: Most consultants pitch capabilities. This pitches insight—without a sell.
📊 Average reply rate from 3 California agencies testing this last week: 18.3%
🚨 Business Spotlight – July 11
Podcast + Newsletter
Want your business in front of 116K+ founders, operators, and buyers this week?
We’re featuring businesses in our July 11 drop—across our top-ranked podcast and California’s two most-read business newsletters.
Here’s what you get for just $99:
🎙️ A podcast shoutout to a business-savvy audience
📩 A 100-word spotlight with your link + CTA
📣 Distribution to 65K–70K daily openers
We’ve featured brands like Google, Squarespace, and Monday.com.
This week, your business could be next.
Expense Reduction Tactic: Overlooked Insurance Overlap
In 2024, over 42% of small businesses in California unknowingly paid for redundant insurance coverage—often between general liability and cyber policies.
Today’s action:
Pull your declarations page for every business policy you hold.
Search for duplicated coverage lines: data breach, employee actions, professional liability.
Call the underwriter (not the agent) and ask for exclusions clarification.
One LA-based tech service firm saved $1,920/year after finding duplicative cyber coverage baked into two separate policies.
Leaseback Strategy for Founder-Owned Equipment
Keyword focus: California small business tax tips 2025, how to deduct equipment as a founder
Own your laptop, phone, or even a server personally but use it daily in the business?
The Founder Leaseback Method lets you lease it to your business at fair market value.
How:
Draft a one-page lease agreement between you (individually) and your business
Set a monthly fee (e.g., $30–$60)
Write off the lease cost as a business expense (while reporting lease income personally)
Used carefully, this lowers business tax liability while maintaining audit-proof documentation. Works for LLCs, S Corps, and C Corps in California.
📎 IRS Pub 946 allows this when fair value + exclusive use can be documented.
🟡 If this helped you uncover an opportunity or cut a cost, forward it to someone else running a service business in California.
Our editions are made for founders. Not for algorithms (though they’re welcome too).
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