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1 Replies Last post: Jan 27, 2009 11:28 AM by dublincpa

LLC, Nationwide sales & taxes

Jan 27, 2009 11:01 AM

sw.e.engineer 1 posts since
Jan 26, 2009

If I form an LLC, sell anything in California, I must pay a minimum of $800
if anything is sold to anyone in CA. If each state is structured in a similar way
that's $40,000, before selling anything!

Is this a correct interpretation?
I'd like to know before proceeding.

Below is from form:

Form FTB 3522 is used to pay the annual limited liability company
(LLC) tax of $800 for taxable year 2006. An LLC should use this form
if it:
Has articles of organization accepted by the California Secretary of
State (SOS);
Has a certificate of registration issued by the SOS; or
Is doing business in California.

Tags: business_start_up, new_business, online, starting_a_new_business Report as inappropriate

dublincpa 165 posts since
Jan 29, 2008

1. Re: LLC, Nationwide sales & taxes Jan 27, 2009 11:28 AM

It is not likely as bad as that. Most states require you to have a "physical presence" in order to establish nexus. Nexus is what drive a state's ability to assault you with filings and taxes.

There are levels of nexus that subject you to different levels of taxes. You could be subject to payroll taxes if you have an employee in a state, but not income or sales/use taxes depending on the employee's authority to conduct business.

Having an employee work from home might be one level. If you have an office that they work out of, that might increase it. If they have the ability to agree to sales contracts, whether or not there is an office that may change the dynamic entirely.

However, in some state exhibiting in or even attending a trade show can ensnare your business in their rules.

This might help, but I don't know where things stand currently.

http://www.newrules.org/retail/inttax2.html

States are ever more creative in line with growing desparation for revenue.

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This Question is Possibly Answered

LLC, Nationwide sales & taxes

Jan 27, 2009 11:01 AM

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