Answers

CA S-Corp selling on the road, out of state

Asked by: Warren  — 7 May, 2013

I have an S-Corp in CA (manufacture apparel and swimwear) and am looking to travel outside the state to Indiana, TX and FL to do promotional road shows, selling at discounts direct to the end user. The shows will be infrequent and will likely only make a few thousand dollars in each state. Will I be required to be licensed in the states mentioned above? And what taxes will I need to be responsible for?

Answered by: admin  — 7 May, 2013

Warren,

According to state representatives I spoke with regarding your case, you will responsible for sales tax in each of the states mentioned, and in addition, for the state of Texas, you will be responsible to submit a franchise tax report next year which will determine if you will end up owing franchise taxes determined by how much revenue you produce in the state and nationwide.

Other than tax registration you will not be required to register your Corporation as foreign entity in any of those states.

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