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Texas business taxable in California

January 20, 2017 • Larry Gurewitz • Log In to Post Comments

I have a client who set up an internet business in Texas.  It was set-up as an LLC.  Then my client moved to California for a W-2 job.   The business is still  headqurtered in Texas.  Sales receipts are received in Texas. Bank Accounts are in Texas. A non-compensated Taxas friend of his runs the day to day business.   My client does make overall decisions.  

So my question is,  do  I complete a P&L for this for California or is not a California Business?


Comments

The LLC is doing business in CA by virtue of the fact that a member is doing business. If there are other non-CA members, they would apportion income to CA. The CA member is taxable on all income because he is a resident.

Thanks Lynn.  Is there a booklet or webinar on Apportionment.  If not please consider one for the future.

We have a webinar ~Multistate and Other California Business Update - that includes a detailed discusson of market-based sourcing and other complext business issues.

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