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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16559
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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We are a new LLC out of Delaware. We are an export company

Customer Question

We are a new LLC out of Delaware. We are an export company that sells only overseas. No US sales. We purchase product from a manufacture in CA., they deliver the product in a sealed container directly to the shipping dock. All orders are made out of Delaware.

Will we have to pay corp taxes in CA?
Submitted: 3 years ago.
Category: Tax
Expert:  Megan C replied 3 years ago.

MyVirtualCPA :

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

MyVirtualCPA :

Do you have any physical locations in California?

JACUSTOMER-9ku1mf0i- :

No

MyVirtualCPA :

If you do not have any physical locations in California and your only tie to California is that you are buying product

MyVirtualCPA :

you would not owe tax to California

JACUSTOMER-9ku1mf0i- :

One of my partners has a house in CA and may make business calls from that house while there for the summer. Will that make a Differences? My understanding is that we will have to pay CA the $800.00 corp tax for doing so. Is that accurate?

MyVirtualCPA :

If you are transacting business in California you will have to register there and pay the $800 per month franchise fee

MyVirtualCPA :

This would be doing business in California. You do have a California Nexus.

JACUSTOMER-9ku1mf0i- :

Nexus?

MyVirtualCPA :

it means that you have a relationship with California

JACUSTOMER-9ku1mf0i- :

His primary home is in New York. Any calls he make are New York based even in CA. Do we have to pay corp taxes in NY as well?

MyVirtualCPA :

If you are conducting business there, yes

JACUSTOMER-9ku1mf0i- :

Okay, So for tax purposes we should keep all transactions out of Delaware? Correct?

MyVirtualCPA :

Correct

JACUSTOMER-9ku1mf0i- :

you have $800.00 a month for CA taxes is that correct? A month

MyVirtualCPA :

It's per year

JACUSTOMER-9ku1mf0i- :

I'm considering purchasing a home there myself (CA). So we dont sell in the US, we don't take ownership of product until it hits the port dock

MyVirtualCPA :

ok

JACUSTOMER-9ku1mf0i- :

but because we have a house in CA we would have to pay the tax correct?

MyVirtualCPA :

Yes, because you will be taxed there. You would be a resident of California

JACUSTOMER-9ku1mf0i- :

Well than it sounds like if we want vacation homes in CA and continue to work, we pay the tax. It may be a good idea than to open a office in CA as a way to offset the tax. Your thoughts?

MyVirtualCPA :

Sounds good to me

JACUSTOMER-9ku1mf0i- :

Is the franchise tax the only tax we would have to pay? ($800.00) we have never bought from a CA manufacture before.

MyVirtualCPA :

You would also pay income tax if you had California sales

JACUSTOMER-9ku1mf0i- :

Okay, we have no US sales what so ever. Thanks

MyVirtualCPA :

youre welcome

MyVirtualCPA :

IF satisfied, please rate my response "excellent" so that I may receive credit for assisting you today

Expert:  Megan C replied 3 years ago.
Thanks for allowing me the opportunity to help you. Please let me know if I can be of any further assistance to you in this matter. I really enjoyed working with you – please feel free to request me again when you come back to ask another question. Simply enter "MyVirtualCPA" in the subject of your question Thanks again for being a JustAnswer customer