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Corporation from abroad and "doing business" in California

Asked by: Paolo - 9 May, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/default.png-f1597c1da25f30f8c1a941405e8391c8 Does the fact alone of having a virtual address in California and creating a corporation there, constitutes "doing business" in the State of California for the franchise tax board? My physical address is in Europe.
Answered by: Robert Kowalski - 9 May, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/35.jpg-687fc92d5f6c5febcbdccb6895b08b8c Dear Paolo,

If your business is registered with the California Secretary of State then it is a California business, and you would have to pay all the fees and franchise taxes associated with that, to keep your business in good standing.

If you do your business from Europe consider incorporating your US operations in one of the incorporation friendly states such as Wyoming or Delaware. You can still maintain a virtual office in California, however I would recommend you to list your European address as the official business address (mailing address can be in California if you prefer it this way).

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