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Hi - my name is Kirk and I'm an Employment Law litigation attorney here to assist you.
In order to do business within the state of California, you would have to register with the Ca. Secretary of State as a foreign corporation.
Usually, income from an s-corp is passed to the shareholder, and the shareholder actually pays taxes on the income. Thus, you would owe tax on the income wherever you live.
However, there would be filing fees yearly reports due to the state of California.
I would recommend that you contact the Ca. Secretary of State to find out what you have to do to be in compliance.