Discussion Archives:Corporation formed in Nevada owner living and working in California

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Discussion Forum Index --> General Chat --> Corporation formed in Nevada owner living and working in California


Aellenlc (talk|edits) said:

4 April 2006

I have a client that formed an LLC in Nevada. They live and have a home office in California. They were told that they do not need to register with California, or file a California income tax return because they do not have a "store front". From the research I have done, they do need to register and file a tax return with California because they do have a home office in California. Any feedback would be appreciated.

JR1 (talk|edits) said:

4 April 2006
I'd sure love to know who dreams up the idea of inc'ing somewhere else, like that accomplishes something. They must register to 'do business' in their state. And the cost of that registration will likely be right near what it would have cost to incorporate there anyway. Surprise! And yes, they are doing business there...

Mstax (talk|edits) said:

4 April 2006
California Corporations Code

Sec. 17451(a) Before transacting intrastate business in this state, a foreign limited liability company shall register with the Secretary of State.

Taxea (talk|edits) said:

4 April 2006
I always question, "I was told", with by whom? It usually turns out that the source doesn't know what they are talking about.taxea 16:32, 4 April 2006 (CDT)

Jdugancpa (talk|edits) said:

5 April 2006
Do you all have the ads running on your radio station: "Incorporate in tax-free Nevada"? They drive me crazy. As if incorporating elsewhere will eliminate the nexus requiring you to file in your home state.

JR1 (talk|edits) said:

5 April 2006
No, but I do get Intuit telling everyone they can be an accountant by using Quickbooks! *smiling, Tim*

Inagpurwala (talk|edits) said:

7 April 2006
It comes from the notion that Nevada does not have income tax, hence you will save tax money. But they forget that if your home(tax) state is other state with income tax, then you have to pay tax in that state (California included). I had to turn down one client this year on that basis. Client insisted no need to file CA Income tax return! Client lived in CA for whole year plus 5.Inagpurwala 17:02, 7 April 2006 (CDT)


  • transferring some posts here because they were on a tax Q that was actually not on this topic - this was the discussion I found that was closest in general, and it's been moved to the Chat forum since that is the only place it's okay to put political stuff:

MP-JD-LLM (talk|edits) said:

21 March 2012
California suspends NOLs? That is desperate. Advisers with clients who live in California, but can telecommute should really advise them to move four miles across the state line to beautiful Incline Village, NV, on the North Shore of Lake Tahoe. There is no state income tax and slightly lower property and sales taxes. The skiing is great. If you know where to go, the fishing good. The hiking and backpacking are superb. Why stay in a state of profligate spenders and watch your money get flushed down the toilet?

Joanmcq (talk|edits) said:

21 March 2012
@ MP-JD-LLM The CA NOL suspensions have been going on for the last 10 years or so. Long time at least. But qualified small businesses can still use them. And CA has been known to consider Incline Village a part of CA, or at least highly scrutinize people who move over the border. Cut ALL ties to CA!

MP-JD-LLM (talk|edits) said:

21 March 2012
Joanmcq, this I know. Move all financial accounts. Quit health club, join here. Register to vote, new driver's license, car registration, Nevada CCW, change church, get a new doctor, Nevada fishing license, California non-resident fishing license, spend money in Nevada, track cell phone usage, wife has new job in Incline, change dog registration, own three homes in Nevada, only one in Cal.

Factors against, go to California three times per month to mow lawn and adjust sprinklers. However, if California does have the temerity to come after me, I will tie them up in court for so long, they will lose ten's of thousands. I hate that state, from Nancy Pelosi, to Barbara Boxer, Diane Finestein, sanctuary cities, teaching third graders to put condoms on cucumbers. And, most of all the tax system and profligate spending on SEIU, and other big government. I was only there three years. No, it is seriously bye-bye Cal.

I once had a client come to me years back. He was making $16 million a year from royalties and wanted to save taxes. The first thing I did was move him from Calif to Stateline Nevada. Imagine saving $1.5 million per year for moving some place nicer.

Trillium (talk|edits) said:

21 March 2012
FYI, here's some great info from katieJ and others on the CA/NV thing: Discussion:Resident of California?. (I didn't transfer your posts there as I'd like to be able to leave that in the tax forum for future researchers. Carry on as you like, here!)
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