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Multiple state return

December 11, 2016 • Flying Donkey • Log In to Post Comments

Hi,  I have a client that is a single member LLC domiciled and registered in CA but also does business in the state of Washington.  Can I approtion revenue between the two states even though Washington's is a B&O tax, not an income tax?




I'm not sure what the rules are for the Washington B&O, but for California purposes, yes you would apportion the income between the two states.  If your selling tangible personal property you would source the income to the destination state.  If your are selling services or intangibles you would source the income to the state where the benefit was received.  See 18 Cal. Code Reg. Sec. 25136-2.

Thank you.


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