How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Joseph Your Own Question

Joseph
Joseph, Lawyer
Category: California Employment Law
Satisfied Customers: 5048
Experience:  Extensive experience representing employees and management
54899578
Type Your California Employment Law Question Here...
Joseph is online now
A new question is answered every 9 seconds

We are a properly registered Virginia LLC with one office in

Resolved Question:

We are a properly registered Virginia LLC with one office in Arlington, Virginia. We have no clients in California. We want to hire a California resident as a part time employee that will perform graphic design work on her computer from her home in Oakland.
Do we have to register with the California SOS and pay the franchise taxes? We plan to register with EDD and pay the appropriate payroll taxes and obtain a valid California workman's comp policy.
Please advise.
Thanks
Submitted: 1 year ago.
Category: California Employment Law
Expert:  Joseph replied 1 year ago.
Hello and welcome to JustAnswer.

My goal is to provide you with excellent service today.

Yes, as a business entity in a foreign (out-of-state) jurisdiction who will be conducting business (hiring an employee to do work in California) you are required to register with the Secretary of State by filing form LLC-5.

See:

http://www.sos.ca.gov/business/be/faqs.htm#form-question7

and

http://www.sba.gov/community/blogs/community-blogs/business-law-advisor/doing-business-multiple-states

You would also be required to pay the $800 in annual LLC taxes ( which is due and payable by the 15th day of the 4th month after the
beginning of the LLC’s taxable year (fiscal year).

https://www.ftb.ca.gov/forms/2013/13_3522.pdf


I imagine you have considered this, but the alternative to hiring an employee and having to pay all these taxes, would be to fire the graphic designer as an independent contractor instead, assuming the person you intend to hire would fit into the independent contractor category. (In which case you would not be required to register with the SOS, or EDD for that matter, or pay workers' compensation).

Since she would be working from home on her own computer that already goes toward her being an independent contractor. Additionally, if she has control over when she performs the work (i.e. no set hours) and is paid for each task she completes (rather than an hourly wage) that would also go toward her being an independent contractor.

Additional factors that would go in favor of the person being an independent contractor instead of an employee would include whether what she does is distinct from what your business does. (I.e., if your business isn't in graphic design that would go in your favor).

Please see here for more information:

http://www.dir.ca.gov/dlse/faq_independentcontractor.htm


I hope the above information is helpful.

Please let me know if you have any follow up or clarifying questions.

Thanks and best of luck!


Joseph, Lawyer
Satisfied Customers: 5048
Experience: Extensive experience representing employees and management
Joseph and other California Employment Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • LawTalk

    Attorney

    Satisfied Customers:

    933
    I have 30 years of experience in the practice of law, including employment law and discrimination law.
< Last | Next >
  • http://ww2.justanswer.com/uploads/LA/LawTalk/2012-6-6_17379_LawTalk.64x64.JPG LawTalk's Avatar

    LawTalk

    Attorney

    Satisfied Customers:

    933
    I have 30 years of experience in the practice of law, including employment law and discrimination law.
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Attorney

    Satisfied Customers:

    857
    JD, 16 years experience & recognized by ABA for excellence in employment law.
  • http://ww2.justanswer.com/uploads/PI/PIExpert/2012-7-1_152453_Attorney.64x64.jpg Brandon, Esq.'s Avatar

    Brandon, Esq.

    Lawyer

    Satisfied Customers:

    332
    Has received a certificate of recognition from the California State Senate for his outstanding legal service.
  • http://ww2.justanswer.com/uploads/PH/phoenixrising119/2012-7-26_11214_043.64x64.jpg melissamesq's Avatar

    melissamesq

    Attorney

    Satisfied Customers:

    47
    Represent clients to maximum recovery in employment cases.
  • http://ww2.justanswer.com/uploads/IG/Iggy1001/2013-11-20_23344_JApic.64x64.jpg Joseph's Avatar

    Joseph

    Lawyer

    Satisfied Customers:

    3511
    Extensive experience representing employees and management
  • http://ww2.justanswer.com/uploads/JK/jkiani22/2013-11-18_15348_JacobKiani1copy2.64x64.jpg jkiani22's Avatar

    jkiani22

    Attorney

    Satisfied Customers:

    24
    Attorney
  • /img/opt/shirt.png Legal Counsel's Avatar

    Legal Counsel

    Lawyer

    Satisfied Customers:

    32
    California Licensed Attorney- 29 years- Wages, Hours, Overtime, Discrimination, Wrongful Termination.