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    1 Reply Latest reply on Jan 27, 2009 11:28 AM by dublincpa

    LLC, Nationwide sales & taxes

    sw.e.engineer Newbie
      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.
        • Re: LLC, Nationwide sales & taxes
          dublincpa Scout
          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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