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Question

Should I change my California residency before a liquidity event?

Answer

Changing your California residency before a liquidity event can potentially reduce your state tax burden, but it requires genuine relocation and thorough documentation. Starting at least two years before your liquidity event can help put you in a position to withstand a Franchise Tax Board audit.

Related FAQs

How do I document my California residency change?

How does California determine your residency for tax purposes?

Do I need a tax professional for a California residency change?
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Last Updated Oct. 29, 2026
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