My friend, I hope you have a better sense for business than you've shown by posting this question!
1) You're in California
2) You need the answers from someone who KNOWS about taxes in California, as well as federal taxes.
3) If you hope to survive, you'd best seek the advise of EXPERTS, not forum posters.
In other words, go to a CPA, or a good attorney for the right, and correct answers.
Don't depend on posting such questions on a forum.
Pete
YCBHN.. You Can Be Healthy Now..
http://pegeler.blogspot.com