Quote:
Originally Posted by PornStarToys
Don't forget you still have to pay *$800 california* tax if ur in california. NOT paying it is ILLEGAL, whatever this scammer is telling you.
There's nothing wrong with getting a business in another state, but California still requires you to pay $800/year.
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(1) NOT a scam.
(2) Of course the California Franchise Tax would apply to such foreign corporations with independent contractors, otherwise known as "affiliates" physically located in California. I never suggested that this tax should be avoided and in fact have repeatedly written that this method is NOT about tax evasion.
Interestingly enough, by your theory this same tax applies to ALL adult companies with affiliates in California and I am *certain* that ALL such adult companies with affiliates in California pay this tax yearly. The tax even applies to corporations located outside of the USA which have affiliates located in California.
Remember, it is the *corporation* which would owe the tax, *NOT* the affilate, so since you've made this excellent point, I'm wondering if corporations which engage in the Adult industry who have affiliates physically located in California will take any sort of action to make certain that the required tax is paid or just drop existing California affiliates and ban future signups from that state?
What a can of worms, especially if the tax people in Califronia start taking a good look around!
http://www.ftb.ca.gov/forms/misc/1063.pdf
From he citation:
"Foreign corporations must be “doing business'” in
California in order to be subject to the franchise tax. For
example, foreign corporations that make deliveries of
inventory warehoused in California based on orders
taken by employees or independent contractors in
California are “doing business'” in California. As such,
they are subject to the franchise tax even though they
might not have an office or a regular place of business in
California."
On the other hand, it could probably be successfully argued that the *affiliate* is not engaged in the business of "taking orders" but is instead only doing promotional work and since Amazon has no warehouse in California, the franchise tax may not apply at all.