out of state llc

[lucrecia]

client registered her llc in wyoming but lives in california. Does she still need to file llc in california? and pay the $800 state fee?

[abctax55]

Is the LLC  *doing* anything in CA?  

If so, yes

[lucrecia]

LLC is just receiving the money in cali but llc registered in Wyoming, is it normal for a 568 to pop up?

[abctax55 · Accepted solution]

You can register in any of the 50 states.

Where the activity occurs (considering any nexus issues) determines the need to file.

"receiving the money in Ca" sure sounds like nexus to me.

[lucrecia]

So no way around it then?

[rbynaker]

You CA folks can correct me if I'm wrong but my understanding is CA is pretty aggressive with this stuff.  If someone calls my business and I answer my cell phone while I'm on vacation in CA, I'm sure they'll want me to file an income tax return.

[abctax55]

Rick... STOP exagerating.  It's only if you answer on a landline.

@lucrecia  -  Stop doing business in CA, then you won't owe any CA tax.

[rbynaker]

---

@abctax55 wrote:

Stop doing business in CA, then you won't owe any CA tax.

---

I'm not convinced this works in CA (or NY).  Someone at FTB must have been an Eagles fan.  You can check out any time you like, but you can never leave.

I haven't looked it up but one of the instructors at a CPE last year was citing a CA tax law case where an AZ business that never set foot in CA was somehow liable for CA income taxes because the finished product was delivered to a CA customer.  The instructor pointed out that by that standard if we do tax returns for any CA clients then FTB considers that to be CA source income subject to CA income taxes.  Even if we deliver the returns electronically or by mail.  CAGMC(alifonia).

[lucrecia]

HAHAHA!!!