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Hi, I can help with thos
did you have questions for me?
Just wanted to lay it out for you .... let's start here:
Title 15 of the US code (15 U.S.C. §381), says that states can't imposing a tax on, or measured by, net income when an entity’s only connection with the state is the solicitation of orders for sales of tangible personal property, ...
… as long as orders are accepted and shipped or delivered from outside the state.
BUT, this offers no protection from sales tax, franchise tax, gross revenue tax, business opportunity tax or single business tax.
So is it legal for a CA LLC to ship to a Nevada resident? And for a NV LLC to ship to a California resident? Both not paying tax? Both LLCs owned by me?
I don't have a lot of time to sit here, I'd appreciate an answer? I have to go soon.
The Court determined that the following activities, among others, were permitted under 86-272 and would not subject the taxpayer to income tax in a jurisdiction:
These activities were all considered to be connected to the process of solicitation of sales.
On the other hand, the following activities were considered to exceed the mere solicitation of sales and could subject the taxpayer to income tax within the jurisdiction:
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OK so I'm not worried (yet) of the income tax side. I'm worried about the sales tax.
I know it's legal for me to own 2 LLCs, one in CA and one in NV, if one was selling "diamonds", and the other selling "cell phones". Out of state customers are not charged tax. In state is charged sales tax.
But let's say both sell diamonds. Can I sell diamonds from NV to California residents (shipped), and sell diamonds also from CA to Nevada residents (shipped) and not collect sales tax from either one?
So for example, a Customer is located in CA. Merchandise is in CA. CA-LLC invoices and ships merchandise to NV-LLC. NV-LLC invoices and ships merchandise to customer. Therefor no sales tax is collected. Is that legal?