Do I need to file a CA tax return? - Spidell

Do I need to file a CA tax return?

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Message Board Do I need to file a CA tax return?

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    • #184349
      Anonymous
      Member

      I have a client in Florida who sells her Corp’s product through reps in different states.  The reps are in that business and receive a 1099.  The products are in Florida and ship from there.  The products are sold all over the US including CA.

      Does she have to file with our Sec of State and file a CA income tax return?

    • #184366
      Sandy Weiner
      Participant

      These types of questions are never easy for California purposes:

      1) It could be she’s protected from California franchise tax under P.L. 86-272, but you’d have to evaluate whether the services provided by her reps fall outside the P.L. 86-272 protection. See FTB’s P.L. 86-272 information on their website at: https://www.ftb.ca.gov/file/business/doing-business-in-california.html

      2) Even if P.L. 86-272 applies, it does not protect her from liability for the $800 minimum franchise tax (because that’s not based on a taxpayer’s net income), so if she has California customers she should still file a Form 100 and pay the $800 tax.

      3) Whether she should register with the California Secretary of State’s Office is a separate question. She should if she is “transacting intrastate business” in California as defined in Cal. Corp. Code Sec. 191. If she’s regularly making sales to California customers, she should probably register

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