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DE company with address in CA

Asked by: Hans Biesalski  — 13 March, 2013

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: admin  — 13 March, 2013

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.

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