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Doing export business as foreign entity

Asked by: Ekeson  — 11 October, 2012

We have a NY LLC. The business is buying goods for export. I live in California. Since I may occassionaly buy and export goods from California, do we have to register as foreign entity in California? What are the tax implications?

Answered by: admin  — 11 October, 2012


Generally speaking, if you can stay away from California, you should. This is not the friendliest of states when it comes to taxation, and one of the smaller examples of the added burden a business takes on itself when registering in California is the notorious franchise tax of $800 (minimum) a year, among other things.

With that being said, if you are in fact in California and you are running the business from that state then not registering is not an option, and you need to form a foreign entity of the NY LLC in California. To learn about all potential tax implication I would strongly recommend you to consult an accountant in California.

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