Answers

Delaware LLC for online companies

Asked by: Jason  — 21 July, 2012

I have online businesses. I am a California resident but I travel often and rarely live there. Would I still need to pay the $800 California tax if I had a Delaware LLC since the business is not being conducted in CA? And could I use a California bank account for the business?

Answered by: admin  — 21 July, 2012

Dear Jason,

If your business doesn’t have much connection to California (for example you don’t maintain an office there) then registering your DE LLC in that state (and thus being subject to all the CA taxes) is not necessary.

Having a bank account is not an indication of physical presence either, however you would probably need to supply the bank with a letter from a CPA or attorney stating that your DE company does not conduct business in California.

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