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I have a financial planniner client that moved to Texas. He now files a Schedule C. All of his clients live in Ca. He does all the work from Texas and is never in Ca. I understand that he has to file a Ca non-resident tax return and pay tax on all the income from his Ca. clients. I just read that if he forms a Corp. and get's a W-2 as an employee, that he does not have to file a Ca non-resident tax return. Is this true?