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 Lev Your Own Question

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 22642
Experience:  Taxes, Immigration, Labor Relations
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

I am an Ohio resident and have LLC in Nevada yet my warehouse

Resolved Question:

I am an Ohio resident and have LLC in Nevada yet my warehouse ships from California...Where did I mess up and what are my tax liabilities to the State of California?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
Hi and welcome to Just Answer!
Because you keep merchandise in California - your business has a nexus in that state and is responsible for taxes.
First of all - before transacting intrastate business in California the business must first qualify/register with the California Secretary of State. (California Corporations Code section 2105, 15909.02, 16959 or 17451.) California Corporations Code sections 191, 15901.02(ai) and 17001(ap) define "transacting intrastate business" as entering into repeated and successive transactions of its business in this state, other than interstate or foreign commerce.
For a Limited Liability Company - file an Application to Register (Form LLC-5) and attach to the completed form a valid certificate of good standing by an authorized public official of the foreign jurisdiction under which the foreign limited liability company is organized.
www.sos.ca.gov/business/llc/forms/llc-5.pdf
Then - as a foreign LLC - your will be subject of franchise taxes - regardless of your income - and might be required to collect sales taxes from selling to California customers.
In additional - you need apportion your business income - and will be subject of income taxes on the part of income attributable to California.
Let me know if you need any help.
Be sure to ask for clarification if needed.
Customer: replied 1 year ago.


So, I am to secure my forms of "Good Standing" in the State of Nevada , attach and register with California Secretary of State. Upon the State of California approval, I may conduct business to make enough funds to hire a personal representative to take care of my business needs? I understand about state sales tax to California residents, no taxes are to be collected if I ship out of the state of California? I apologize for my small donation, I lost my job of 20+ years and am operating on a shoe string budget, I purchased inventory and contracted for a nice website amongst the basic LLC and it's State fees of Nevada. I'm just a mid west blue collar guy trying to make my life a little better, even if it is an online retail store. I will certainly proceede from your information. Indeed, I appreciate your words and dilligence, you are very helpful to me. Thank You.. Warm Regards

Expert:  Lev replied 1 year ago.
So, I am to secure my forms of "Good Standing" in the State of Nevada , attach and register with California Secretary of State. Upon the State of California approval, I may conduct business to make enough funds to hire a personal representative to take care of my business needs?
You are correct - you will need to register your business in California BEFORE you may conduct any business activities. In your situation - the business will be under foreign (out of state) LLC.
I understand about state sales tax to California residents, no taxes are to be collected if I ship out of the state of California?
Yes - that is correct - no CA sales tax for sales to out-of state customers.

Do not worry about "donations" and be sure that all issues are clear.
Please be aware that LLCs classified as disregarded or as partnerships are subject to an $800 annual tax. This applies if they do business in California or the SOS accepts their Articles of Organization (LLC-1) or Application for Registration as a Foreign Limited liability Company (LLC-5). LLCs organized or registered in California are subject to the annual tax even if they conduct no business in California. The only way to legitimately avoid the $800 franchise tax is to operate as a sole proprietor. I might suggest to review this article - http://www.northwestregisteredagent.com/avoid-ca-franchise-tax.html If you are on a limited budget - that might be for your benefits.
Customer: replied 1 year ago.

Thank you for that interesting article. I guess I should have done more research, but hind sight is 20/20. I am sole proprietor of my LLC and sales of my items should be of no to non existent risk to anyone. I will obtain the appropriate forms and hand deliver them so I can ask more questions of the State of California. I certanly am curious about being a non resident of California and operating in California as well. Most certainly you have opened my eyes and put me a little more at ease with my "California Fears" LOL....because of you, I just may be able to sleep through the night. Thank you... Warm Regards


Expert:  Lev replied 1 year ago.
Appreciate your warm words.
That is why I am working on this site - nobody listen to me at home - but here at least some do appreciate my answers.
Be sure to ask for clarification if needed.
Customer: replied 1 year ago.


Ok, one last question on Just Answer.com, is this purely random? If I have any other questions regarding what we have been speaking of, can I contact you since we have a history or do I have to start over with another expert? Would be a shame to have to take a chance with another since you are so awesome in your field!! Ha, I can build a bridge or a skyscrapper but when it comes to business/tax law, I throw my hands in the air!! Lol...There's always a first time for everything, I believe I have a lot to learn. Enjoy your Holiday weekend and all my best to you and yours...~R~

Expert:  Lev replied 1 year ago.
You absolutely could.
What you need to do - start your question with something like "For LEV only..." - and that will be an indication for other experts.
Please be aware that I personally might be not immediately available - so that could delay your answer.
Please feel free if you have any tax related issues.
Happy holidays for you and yours.
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 22642
Experience: Taxes, Immigration, Labor Relations
Lev and other Tax 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:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • 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
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.