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Incorporated in Colorado, doing work in California

Asked by: Maya - 14 June, 2012 We have an LLC registered in Colorado with three owner-members. Two of us live in Colorado, and one in California. We do consulting work for a client in California. Do I need to register in California and or get a business license for California? Thanks in advance!
Answered by: Robert Kowalski - 14 June, 2012 Dear Maya,

Obviously this is a very grey area. The fact that one of the members lives in California by itself doesn't immediately create strong nexus in that state. However maintaining an office (even a home office) in California would already be a sign that the company is doing business in that state, and might require local registration.

Also, having a client in California wouldn't immediately require registering there, however taking all the factors into consideration, and given the nature of the involvement with that client you might be in a position where such registration (foreign entity) would be required, according to the State.

Bottom line is, its quite murky and in order to get a solid yes/no answer you probably should consult a CA licensed attorney.


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