Try:
var zipLinqQuery =
from z in db.ZIPMASTERs
where z.CORP == 12
&& z.ZIPBEG.CompareTo("85546 ") <= 0
&& z.ZIPEND.CompareTo("85546 ") >= 0
select z;
I don’t know that String.CompareTo works in LINQ to SQL, but it’s the first thing to try.
(Normally you should use a StringComparer to specify the right type of comparison, but I suspect in this case CompareTo is the better option.)