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    5 Replies Latest reply on Feb 14, 2008 11:55 AM by Lighthouse24

    Moved to different state, do I still have to file taxes?

    b2bb2c Wayfarer

      I have a company in California (sole proprietorship) and I recently moved to Texas. All my business is now in Texas, do I still have to file state taxes in California?

      Thank you!
        • Re: Moved to different state, do I still have to file taxes?
          LUCKIEST Guide
          Moved to different state, do I still have to file taxes.
          You have to file Federal Taxes in all states if you are doing business.
          When did you move?? 2007??, This year?? Do you have an Accountant??
          Are you doing business with clients in California??
          LUCKIEST
          • Re: Moved to different state, do I still have to file taxes?
            LUCKIEST Guide
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            • Re: Moved to different state, do I still have to file taxes?
              Lighthouse24 Ranger
              b2bb2c, you definitely have to pay taxes for the period up until you moved (they can slap a lien on you if you don't, and trying to get that off your record can be a real headache).

              In most states, when the owner of a sole proprietorship dies or moves out of the county in which the business is registered, the business simply ceases to exist (but any liabilities, like taxes, remain as personal obligations and follow the owner or his/her heirs). Granted, California isn't like "most states" sometimes -- but I don't see any form, filing, or fee listed there to cover the dissolution of a sole proprietorship, so it probably is like most states in this case. Even so, I'd send a certified letter to the applicable county clerk or Secretary of State saying that your business was closed as of a specific date (just to be covered).

              Hope this helps. Welcome to Texas!
                • Re: Moved to different state, do I still have to file taxes?
                  b2bb2c Wayfarer
                  I'll send a letter the the county clerk (the same place where I applied) and I'll let them know I want to close the company there.

                  Thank again for the very good advice and for the very warm welcome to Texas :) .
                    • Re: Moved to different state, do I still have to file taxes?
                      Lighthouse24 Ranger

                      An additional thought . . . if your CA business files a rendition or pays property tax, send a copy of your letter to the local tax assessor-collector's office, too. Sole proprietorships are listed as separate entities (from people) on local tax rolls, so even though the owner is taken off the tax rolls when he/she moves, the business may not be.

                      I've seen this happen to military spouses who start home-based businesses. For example, if a husband is on active duty, the family is usually exempt from personal property taxes in the local taxing district where they are stationed or quartered. Yet if the wife starts a small business as a sole proprietor, the new business entity is added to the local tax rolls and does file a rendition and/or pay taxes on any property used for the business. When the husband is transferred and the family moves, the business is automatically dissolved -- but the local tax assessor doesn't receive any notification of that. So when the rendition or taxes for the business come due and aren't paid, the tax assessor identifies the owner and files a lien against her for tax evasion. Suddenly the wife who was just trying to keep busy while her husband was deployed (and bring in a little extra money to make ends meet) has inadvertently created a credit problem for the family, impacted her husband's security clearance, etc.