Call Us Now: +1 (877) 330-2677 Live Chat: ONLINE NOW            
https://d25eic0jctudgb.cloudfront.net/images/site/general/answers-to-answers-8743d0241f5d8c2c996225efe2063f89
https://d25eic0jctudgb.cloudfront.net/images/site/headlines/articles.jpg-5fa541d76bf4be9016b1176147b3bc96

DE company with address in CA

Asked by: Hans Biesalski - 13 March, 2013
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/default.png-f1597c1da25f30f8c1a941405e8391c8 I am interested in incorporating a C Corp in Delaware for my startup. I will have no employees and will not do any business in California but want to use my address in California as corp address (for example on IRS forms and website), 
 
- Will using this address cause any complications with California Franchise Tax and/or IRS?
- Can I still open a bank account in CA for my DE company?

Many thanks.
Answered by: Robert Kowalski - 14 March, 2013
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/35.jpg-687fc92d5f6c5febcbdccb6895b08b8c Hans,

I will give you a somewhat philosophical answer to this questions: technically you can use your CA address for the DE company, and open a bank account in CA. The question always comes to what does this business do and who manages it? Even if you have no employees and it's an online business (so no "real" activity in CA per se), it will still be considered a California business, because you manage it from your home.

As such you will eventually be required to register this DE company in CA as foreign entity, and be subject to all CA taxation and such. Still, since its a DE company it will be subject to DE laws for all internal affairs, which is an advantage.

Comments:

We Want To Connect With You!

Social Media is increasingly the preferred method for businesses to connect with their clients, peers and customers. We are dedicated to share information and useful tools to help you grow your business.

Like us on Facebook, follow us on Twitter, and let's begin the exchange to Help Grow America One Business at a Time - starting with yours!

https://d25eic0jctudgb.cloudfront.net/images/site/general/payment-methods-footer-052a63251a379d6e5ece1801f07470fc Official PayPal Seal SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment