Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

I just formed a Wyoming S-Corp and haven't filled out my…

I just formed a Wyoming...
I just formed a Wyoming S-Corp and haven't filled out my 2553 form yet.I currently live in CA, but plan to establish my nexus in WY. I have an office lease that I'm signing in WY this week before I complete the 2553, so that I can elect myself from that state.I don't mind the $800 foreign corporation tax here in CA, but that's the only tax I want to owe the state of CA.In order to establish my nexus, is the 2553 with me using my WY address a sufficient action, or should I just start over with a fresh corporation?
Show More
Show Less
Ask Your Own Tax Question
Answered in 25 minutes by:
3/6/2018
Chad EA, CFP ®
Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Tax
Satisfied Customers: 2,138
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA
Verified

Hello!

A business may have a nexus in more than one state, which is an evolving issue online retailers are experiencing difficulties with currently.

For example, if you were an amazon affiliate and amazon stored your inventory in Washington, you would have a business nexus in Washington and would be responsible to collect and pay sales tax to the state of Washington for the items you sold in Washington.

The 2553 form is used to elect to be taxed as an S Corp and does not necessarily in itself determine your sole business nexus.

California will still consider you "doing business in California" if you are the owner of the S Corp who is incorporated in Wyoming, but have an office or payroll employees in CA.

___

Revenue and Taxation Code (R&TC) section 23101

A taxpayer is doing business in California if it actively engages in any transaction for the purpose of financial or pecuniary gain or profit in California or if any of the following conditions are satisfied

  • For the conditions above, the sales, property, and payroll of the taxpayer include the taxpayer's pro rata or distributive share of pass-through entities. "Pass-through entities" means partnerships, LLCs treated as partnerships, or S corporations.

https://www.ftb.ca.gov/businesses/Doing-Business-in-California.shtml

Who does the new law affect?

  • Out-of-state corporations
  • LLCs
  • Pass-through entities (partnerships, S corporations, LLCs treated as partnerships) and their partners/shareholders/members that have property, payroll, or sales in California

"if a taxpayer is considered doing business in California either under R&TC Section 23101(a) or (b), it still has a filing requirement and will be subject to the minimum tax, because that tax is not computed based on net income and therefore is not subject to the protections of PL 86-272[1]"

Please let me know your follow up questions.

Ask Your Own Tax Question

Hello,

Are you satisfied with the Answer you received?

If you are satisfied with the Answer, please accept the Answer and rate my service. Accepting the Answer and Rating my service cost you nothing extra, but does notify JustAnswer that I have completed my assigned work.

If you have any follow up questions please don't hesitate to Ask.

You can rate me by using the stars, or faces on your screen and clicking submit

I look forward to working with you in the future and I hope you feel that I provided you with 5 Star services

Regards,

Chad CFP ® professional

Federally Licensed IRS Enrolled Agent

Chad EA, CFP ®
Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Tax
Satisfied Customers: 2,138
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA
Verified
Chad EA, CFP ® and 87 other Tax Specialists are ready to help you
Ask your own question now
Was this answer helpful?
Ask Chad EA, CFP ® Your Own Question
Chad EA, CFP ®
Chad EA, CFP ®
Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Tax
Satisfied Customers: 2,138
2,138 Satisfied Customers
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA

Chad EA, CFP ® is online now

A new question is answered every 9 seconds

How JustAnswer works:

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

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.WMatteson, 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.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, 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.

OrvilleHesperia, 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!!!!

AlexLos 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.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,451 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

56 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,124 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I've been working through form 4797 for sale of a rental
I've been working through form 4797 for sale of a rental property by an LLC. for rough numbers we had a gross sale of 110,000, adjusted basis of 100,000 (with selling expenses included), and accumulat… read more
Chad EA, CFP ®
Chad EA, CFP ®
CERTIFIED FINANCIAL PLANNER TM, Professional
2,138 satisfied customers
I need to file a tax form. Its a new LLC with no income, no
I need to file a tax form. Its a new LLC with no income, no business was generated. Is someone avaiable to help me with this now?… read more
Shan-Nel Simmons
Shan-Nel Simmons
Tax Professional/Owner
Master\u0027s Degree
43 satisfied customers
LLC entity is formed in USA (State of NJ) and the only
LLC entity is formed in USA (State of NJ) and the only Member that is listed on Certificate of Formation is a foreign Corporation (in Latvia). How this USA based LLC should file its year end taxes? It… read more
Carter McBride
Carter McBride
LLM
952 satisfied customers
If I am converting an LLC taxed as a partnership to be taxed
Quick question. If I am converting an LLC taxed as a partnership to be taxed as an s corp, would the 1065 for the year prior to the switch be considered a final even though I will be using same ein fo… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
A corporate tax question; If a foreign company is a member
A corporate tax question;If a foreign company is a member of a US-based LLC, does this foreign company enjoy the pass-through privilege as an ordinary LLC member? Does the LLC need to withhold US tax … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
916 satisfied customers
I have an IRS tax law question regarding forms need to file
I have an IRS tax law question regarding forms need to file an extension on filing a form 1041. Need a tax professional from California to respond. … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,906 satisfied customers
I am filing taxes as Self-Employed through a LLC digital
I am filing taxes as Self-Employed through a LLC digital marketing business I own.One of the ways I made profit was by selling marketing services on an online gig-listing website(I do not own) which a… read more
Chad EA, CFP ®
Chad EA, CFP ®
CERTIFIED FINANCIAL PLANNER TM, Professional
2,138 satisfied customers
On MD state form, you said Md net income was $12k+; last
on MD state form, you said Md net income was $12k+; last yr's form (2106) sd $27k+.. saw nowhere to compare or correct. Husband died 9/15/16. My first time filing single in over 30 yrs. Question was a… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,124 satisfied customers
Just formed a single member LLC in California, just want to
Just formed a single member LLC in California, just want to verify if I have to pay the $800 Annual California Franchise Tax Due if my revenue was <$250k? … read more
abci168
abci168
Principal
27 satisfied customers
With the new tax bill what is the impact on pass through
With the new tax bill what is the impact on pass through income for LLC's 2018 income? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Tax Experts - Foreign partner US LLC partnership had one
Tax Experts - Foreign partnerUS LLC partnership had one foreign partner (42.50%) from Italy. In order to get k-1 and pay taxes, foreign partner applied for federal ID which was used by US LLC to repor… read more
taxmanrog
taxmanrog
Master\u0027s Degree
897 satisfied customers
I have an existing LLC which filed as a partnership and then
I have an existing LLC which filed as a partnership and then as a schedule when it became a one member LLC. I now want to be treated as an s-corp in 2018. Do I need to file both 8832 and 2553 or just … read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,451 satisfied customers
Can a married LLC Partnership file schedule C on their 1040
Can a married LLC Partnership file schedule C on their 1040 with their W2 income? And if so if they fie separate sch C how do they go about it? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,906 satisfied customers
If someone is a foreign who received money through a
if someone is a foreign who received money through a partnership in the USA but has ITIN number or SSN, does he need to file form 1042?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have formed an LLC in California. -Me and my wife are the
I have formed an LLC in California. -Me and my wife are the only partners in this company. -We are both alien non-residents of US. -I have a SSN but my wife does not.What is the tax situation of this … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,906 satisfied customers
I have an LLC in CA. Originally it was a partnership, filing
I have an LLC in CA. Originally it was a partnership, filing a 1065 to the IRS. Now, the other partners have left and I want to file as a single member LLC, flowing back into my schedule c. The change… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,906 satisfied customers
Penalty for late filing of partnership LLC tax return, not
Penalty for late filing of partnership LLC tax return, not eligible for Rev Proc 84-35 relief because one of the partners is a foriegner… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,906 satisfied customers
Can my LLC with US and Foreign members be a shareholder in
Can my LLC with US and Foreign members be a shareholder in an S Corporation? The K-1 would go to the LLC.… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,124 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x