Legal Question in Business Law in California

Re: NV based Business doing business in CA

Payroll taxes are usually paid to the state (and sometimes the municipality) where the employee normally goes to work, but there are widespread instances where states and cities are demanding taxes for out-of-state or out-of-town workers who come over to do repair work, make sales calls, etc. For example, I have a client with main office in Concord, CA which pays business and employment taxes to San Francisco when its sales and support people make trips across the Bay.

As to franchise and income taxes, you'll have to pay the former in Nevada if it's a Nevada corporation (I understand Nevada has no income tax), and both in California, but California will tax you only on "California income." An explanation of how what's determined is way beyond the scope of LawGuru.

If the business is a corporation and does business under its true corporate name, no "DBA" needs to be filed. However, the Nevada corporation will have to file qualifying papers with the California Secretary of State.

At the time the business is ready to have employees, it should also obtain legal counsel and an accountant to provide necessary services as needed.