LLC OO not living in California, Do you pay Franchise tax??

@double yellow

 

I hesitate to say all but most states have some form of franchise tax. I had to pay franchise tax when I started my LLC in Arkansas. It applies anywhere you have a domicile or business address. I would think passing through wouldn't count.

 

I know this is very complicated answer (*** being a smart pants) but ....

YOU don't. ​

Why?

Because you are not "doing business" within the state of California as a foreign business - the foreign part is a business from out of state. When you register your business in California and have to file a California tax return as a business, you would have to pay the franchise tax too.

If you would have to pay, then that means every person selling through ebay with an ebay store and amazon and what ever would also have to pay it.

 

No...Not as of yet, but I'm waiting to see who else wants to put their dick skinners in my pockets. Arkansas sent me a letter the other day....Looks like some type of IFTA form that I had to fill out and send back to them. Funny thing is...I'm based out of NC, with NC tags. I've completed my UCR junk for this year. Who and what else is coming for Small Business Owners like me. It's #### near impossible to keep up.

 

I got one from Ohio a while back, I called and told the nice girl that the entire bill was settled through the State of Michigan and they can retrieve those records from them. She insisted I needed to audit my Ohio miles and report them, I told her it was done through the State of Michigan and gave her the IRP office number, then hung the phone up.

 

I used a dispatcher whose brother is an auditor for the mob, I mean state of Illinois. He claimed they could, but I asked my tax advisor and he said that he had never heard of such a thing.