California's New SaaS Tax Law Explained

State tax rules can quietly become one of the biggest risks facing growing businesses.

Penny Sweeting is a Senior Tax Manager at Withum specializing in state and local tax (SALT), nexus, and multi-state expansion. She helps businesses identify tax exposure before it becomes an expensive compliance problem, particularly as companies grow across state lines, hire remote employees, or prepare for mergers and acquisitions.

In this episode, Penny explains what tax nexus really means, how economic and physical presence create tax obligations, why California's new SaaS tax rules are a major development, and how proactive planning can reduce risk, uncover savings, and protect business value during growth.

Key Takeaways:

● Physical and economic nexus create different tax obligations that every growing business should understand.

● Remote employees, third-party inventory, and e-commerce expansion can unexpectedly trigger multi-state tax exposure.

● California's new SaaS tax rules make it critical for software companies selling into the state to prepare before 2027.

● M&A due diligence frequently uncovers hidden state tax liabilities that can impact valuation and deal structure.

● Regular nexus reviews help companies avoid costly penalties while identifying potential tax savings and refund opportunities.

Connect with Penny:

Website: https://www.withum.com/service/tax/state-and-local-tax/

Website: https://www.withum.com/state-and-local-tax-updates/

With Your Guest Host Seth Krussman:

Seth Krussman is a seasoned financial advisor and partner at Brayshaw Financial Group, LLC, with over 30 years of experience in entrepreneurship, business development, and wealth management. A Registered Representative and Investment Advisor Representative with Osaic Wealth, Inc., Seth specializes in tax-efficient investment strategies, executive compensation, and succession planning for high-net-worth clients. Based in Hillsboro, Oregon, he is also the nationally recognized co-host of the radio show Money On Tap and an active community leader, husband, and father.

Email: seth@brayshawfinancial.com

Website: brayshawfinancial.com

Podcast: https://www.brayshawfinancial.com/money-on-tap

Facebook: https://www.facebook.com/3Dinvesting/

Twitter: https://x.com/BFG_LLC/