3 ms·

Oregon has something similar. Was surprised how easy and fast it went through. People saying why not form in another state: it was my understanding that while

Oregon has something similar. Was surprised how easy and fast it went through. People saying why not form in another state: it was my understanding that while you can do this you'd still have to register with the state you're actually in so you're not saving on taxes and just spending more money by registering twice? Maybe I'm just misinformed...

ChuckMcM 9y ago
In California the trigger is 'doing business in, or having facilities in California.' There were lots of interesting cases here around Amazon and others try to dodge California taxes (my mother-in-law was a CPA and had some really interesting stories about this). One of the more interesting was an attempt to tax one of the casino owners (I believe it was Harrahs but I don't have access to the records) because they lived in California (South Lake Tahoe). That was denied because the casino did not do any business with anyone in California and the guy they were chasing didn't do any work for the casino from home.
- void-star 9y ago
  I think this points out a significant reason "why to incorporate in CA" (as is being discussed elsewhere in the comments, as in "... instead of Delaware") Could somebody clarify? Say I want to create a corporation, and will probably do work for it from home living in California. Does incorporating in Delaware now mean I will be paying the $800 tax (or some other) for CA, in addition to whatever Delaware charges?
  - mark212 9y ago
    If you’re not profitable, then the minimum fees matter. If you are turning a profit and you’re living in California and working from home (and assuming you have no employees) then there’s no real reason to incorporate in Delaware. The franchise fee is 1.5% with a minimum of $800 for all profits from business generated in California. So yes you’d pay the franchise fee for CA and the $250 to Delaware

ChuckMcM 9y ago

In California the trigger is 'doing business in, or having facilities in California.' There were lots of interesting cases here around Amazon and others try to dodge California taxes (my mother-in-law was a CPA and had some really interesting stories about this). One of the more interesting was an attempt to tax one of the casino owners (I believe it was Harrahs but I don't have access to the records) because they lived in California (South Lake Tahoe). That was denied because the casino did not do any business with anyone in California and the guy they were chasing didn't do any work for the casino from home.

void-star 9y ago
I think this points out a significant reason "why to incorporate in CA" (as is being discussed elsewhere in the comments, as in "... instead of Delaware") Could somebody clarify? Say I want to create a corporation, and will probably do work for it from home living in California. Does incorporating in Delaware now mean I will be paying the $800 tax (or some other) for CA, in addition to whatever Delaware charges?
- mark212 9y ago
  If you’re not profitable, then the minimum fees matter. If you are turning a profit and you’re living in California and working from home (and assuming you have no employees) then there’s no real reason to incorporate in Delaware. The franchise fee is 1.5% with a minimum of $800 for all profits from business generated in California. So yes you’d pay the franchise fee for CA and the $250 to Delaware