I have noticed that people use the term “service,” “product,” and “intangible” interchangeably in relation to software. For example, I was recently going through a client’s website to learn more about their technology and business, and I asked my husband (an engineer) to help me. He started explaining what they did with various acronyms like WLAN, CMOS, LTE-capable and so on, but it didn’t take long for me to get lost in his tech jargon. After seeing my blank face, he boiled it down to this: they sell a software product. But what does that really mean? What is licensing of software considered? And really, why does it matter?…
California Apportionment Rules - Let the Confusion Begin
Never a dull moment with California tax rules. Only a little more than a year ago California adopted a rule allowing multi-state businesses to choose between a single sales and a three-factor apportionment method to determine their state tax liability. It actually made California a bit more business friendly for once, but not for long. Statewide Proposition 39 simplified the choice for businesses by making the single sales factor method mandatory effective January 1, 2013…