Legal Question in Business Law in California

Forming an LLC

I have a residence in CA as well as

one in FL. If the business I operate is

only online will I be subject to CA

taxes if I live in CA most of the year?

Does working on the internet count as

''transacting business in the state''.


Asked on 6/12/09, 11:32 am

2 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Forming an LLC

Yes. You are transacting business somewhere. Use of the Internet as a communications tool does not cause a business to vanish into nowhere any more than the use of mail and telegraph in the 19th Century or broadcasting in the 20th Century. The location of a one-person business is probably where the proprietor goes to work. If you sit at a desk in California and operate a mouse and keyboard there, California will have the right to treat the business as a California business. True, there are some limitations on California's ability to collect sales tax on all transactions, but that has to do with the location of the buyer. For purposes of the franchise tax, however, you are transacting business in California and probably subject to the franchise tax and income tax.

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Answered on 6/12/09, 11:46 am
Adam Telanoff Telanoff & Telanoff

Re: Forming an LLC

Yes.

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Answered on 6/12/09, 12:36 pm


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