The debate surrounding the future of loan-out corporations in California has been clarified recently, with the California Employment Development Department (EDD) confirming that these business structures will not be prohibited in the near future. Loan-out corporations, popular especially in the entertainment industry, are businesses typically structured around a single individual, with clients paying for services to the corporation instead of the individual directly. The EDD refuted the message from payroll agency Cast & Crew earlier in 2024, which stated they would no longer be accepting loan-out corporations, emphasizing that the department only intends to ensure collection of taxes as per the law.

Loan-out corporations, while popular in the entertainment industry due to the tax breaks and benefits they offer, can sometimes pad their deductions, which has concerned tax authorities in some states. Individuals planning to set up or already running a loan-out corporation are urged to ensure compliance with relevant tax laws. In order to stay updated with the changes in the guidelines related to loan-out corporations, it’s important to have a reliable communication channel with the EDD.

If you need to understand how changes in the law could affect your loan-out corporation or if you are facing an EDD audit, it might be necessary to get in touch with the EDD directly. EDDcaller.com offers advice on the fastest way to get through to edd. The site provides tips on how to navigate the EDD’s automated system in order to speak to a live person, and discusses the best times to call to avoid long wait times. Additionally, it offers guidance on the information you need to have handy when calling the EDD, including data related to your unemployment claim, inquiry, or issue.