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J. Warren
J. Warren, Attorney
Category: Business Law
Satisfied Customers: 2211
Experience:  Experience in general business transaction and formation matters.
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We are an S Corp incorporated in Georgia and we have a

Customer Question

We are an S Corp incorporated in Georgia and we have a shareholder who lives in California who we began paying wages in 2015. We use a Professional Employer Organization (PEO) for our payroll so this shareholder/employee's wages are paid under our PEO's tax ID and not under our tax id. What we need to find out is whether or not we are required to become registered to do business in the State of California just because we have an employee living in California and receiving wages. Please note that we are not doing intrastate business, it is interstate business. The employee in California is not engaged in sales activity of any type.
Submitted: 1 year ago.
Category: Business Law
Expert:  J. Warren replied 1 year ago.

Hello my name is ***** ***** I look forward to providing you information. Please note:

(1) this is general information and is not legal advice. I never propose a specific course of action. There is no attorney-client relationship or privilege that is formed when communicating to an expert on this site. The site repeats this disclaimer numerous times. By continuing, you confirm that you understand and agree to these terms; and

(2) there may be a slight delay between your follow ups and my reply while I am typing out my answer.

When a company does "repeated and successive transactions" it is considered to be conducting business in the State and must registered as a foreign business. see Section 100-195 www.leginfo.ca.gov/cgi-bin/displaycode?section=corp&group=00001-01000&file=100-195.

However, merely having an employee in the State is unlikely to be considered repeated and successive transactions". The California courts have recently ruled that renting a space and having an employee in the State is not enough. See ARZAB v. KM ENTERPRISES, INC., Dist. Court, ND California 2012 source: www.scholar.google.com/scholar_case?case=8406367728089251658&q=+Jarzab+v.+KM+Enters&hl=en&as_sdt=2,5

All my best & encouragement.

Thank you for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. Please note that you are asked to rate my courtesy and professionalism, and not whether the answer supports your legal position. I only receive credit when rated “ok” (3 stars) or higher. If for any reason you feel that a low rating is appropriate, please first give me the opportunity to address your concerns by clicking the "reply" tab.

All states have intricacies in their laws and any information given is simply information only and specifically is not intended to be, nor does it constitute, legal advice. This communication does not establish an attorney-client relationship with you.

Expert:  J. Warren replied 1 year ago.

Let me know if there is further information you seek. I realize rating takes an extra step, I appreciate your time in doing so.

Customer: replied 1 year ago.
Hi Mr. Warren,I'll review your response and get back to you early next week.Thank you.
Expert:  J. Warren replied 1 year ago.

You are welcome!

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