by Michael Lodge
The State of California Franchise Tax Board requires that every registered Corporation, LLC, C Corps in other states that do business in California have to pay the $800. If they are here doing business that is a different story, but if your company is in another state and operating in another state, you have no California income, you should not have to pay the $800. Your corporation or rental property set up as a legal business entity in Texas to manage your Texas property, but you may live here – the State of California wants your $800 because they say you are conducting business in the State of California – even if you make a phone call from California about your property in Texas. Greedy California.
No wonder companies and people move out of the State of California because it is managed by hungry liberal politicians that want every ounce of tax money they can squeeze out of taxpayers. Come on California, be a little smart here, if a family sets up a corporation in Texas and the property is in Texas, all money flows into Texas – not California – it is not California money. Even if they make a call in California regarding their property set up in a Texas corporation, llc or other entity – their business is in Texas.
Our office will reach out to various legistlators in California to talk about this issue with them. If California are going to be that legalistic they will have a lot more companies move out of California.
If you have tax issues, tax returns prepared, call our office at: 877.778.1770