ForumsTaxes and Payroll

While state nexus laws aren't simple, physical presence is a big determining factor.

Do you have an office or physical presence anywhere but CA?

That is where CA will probably have its hooks in you. The problem with your set up is that you have no basis that I can see to argue that anything happens outside of CA. From what you indicate, there is nothing to establish a fact pattern indicating anything other than a non resident LLC doing business in CA.

You have no employees, facilities, or even a mailing address outside of CA. All you seem to have is a registered agent. I can't believe for even a second that that would be enough. If you were to establish a virtual or rented office of some that might give you an arguable leg on which to stand, but that would likely cost more than $800/yr.

Feel free to contact me if you need more specific information.

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Does anyone else do ANYTHING for the business? Where do they do it?

What do YOU do for the business? Where do you do it? It has to be done somewhere and there does not appear to be anywhere else for it to be done, but CA? You are not working at your registered agent's office are you? You don't have a desk space or phone line set aside there do you? What about a Nevada business license?

Is there ongoing programming to the app? Are there marketing efforts to try to get the app sold? Where are those things done? From what you have said I infer that they are done from your home. That is likley nexus. You can't likely claim that business is not being conducted in CA when there is no where else for the business to be conducted and the only person conducting business on behalf of the LLC is doing all of it from CA.

Nexus is a facts and circumstances kind of thing. You can claim to be an NV LLC with no CA presence, but the facts indicate otherwise.

As I mentioned you can probably try to establish an NV presence by opening a virtual office, but that will likely cost more than the CA LLC taxes and fees saved.

I am not a big fan of sole proprietorships in this litigious age.

WIth the limited info provided, the path of least resistance and consequently most reasonable expense is probably to register the NV LLC in CA and pay the $800.

Depending on what you are doing and how things are going, there may be a benefit to establishing and NV presence.

Please feel free to email me specific details if you want more appropriate suggestions.