Legal Question in Tax Law in Nevada

Nevada Corp. looking for lowest taxes.

Is it possible if I am a Nevada corp. working out of calif. to avoid paying calif tax? Would it be OK to get a Calif. resale tax number so I could buy parts without paying sales tax. Build products in Calif, then drive them to Nevada to ship them. Would I even need to ship them out of Nevada givin I am a Nevada Corp?


Asked on 1/30/98, 6:46 pm

1 Answer from Attorneys
WILLIAM BRANDWEIN WILLIAM A. BRANDWEIN, A PROFESSIONAL LAW CORP.

NEVADA CORP IN CA

A FOREIGN CORP THAT DOES ANY BUSINESS IN CA MUST REGISTER AS A FOREIGN CORP AND WILL BE SUBJECT TO CA TAX BASED UPON THE APPORTIONMENT FORMULA. SALES TAX CAN BE AVOIDED ON PARTS PURCHASED IF THEY ARE FOR RESALE. SALES TAX WOULD HAVE TO BE COLLECTED FROM CUSTOMERS IF SALES ARE SHIPPED TO CA CUSTOMERS. BURDEN OF PROOF IS ON THE TAXPAYER TO SUPPORT OUT OF STATE SALES.

Read more
Answered on 2/01/98, 3:18 pm


Related Questions & Answers

More Tax and Taxation Law questions and answers in Nevada