Level 7

Question

California Individual vs. California Limited Liability

Forum|Forum|2 years ago
February 12, 2024
2 replies
7 views

My client normally files from NJ.

They have a sch C LLC.

They moved from NJ to CA.

Which state do I do or both? California Individual vs. California Limited Liability. I am not proficient in CA. Any insight would be helpful

ProSeries Professional

This topic has been closed for replies.

sjrcpa

Level 15

Part year CA and part year NJ.

CA has a special LLC tax and form. This is in addition to the normal Schedule C reporting.

If the LLC was formed in NJ there is probably a continuing legal filing in NJ to keep the LLC alive.

After the move to CA, where was the work being performed and where were the LLC's customers? NJ may still want some nonresident income tax.

The more I know the more I don’t know.

abctax55

Level 15

California's form for an LLC is F.568.

If the entity wasn't 'formed' in CA, the great state of CA might not want the F.568 or the $ 800, or the LLC fee that's based on gross receipts. Or, it might (given the inherent greediness of CA). And CA does have 'wording' about doing business in CA, even if an entity hasn't registered or received a SOS number.

Spidell (caltax.com) is a great source for CA information.

HumanKind... Be Both

sjrcpa

Level 15

@MGC94 Anna (abc) is in California so she does a lot more of these than I do. Listen to her.

The more I know the more I don’t know.

abctax55

Level 15

"I'm not an attorney, and I didn't stay at a Holiday Inn last night"....

As an LLC provides legal protection of assets (supposedly), I would also wonder if an LLC registered in NJ, but now moved to CA and doing business there (right?) needs to think about said protection.

(paging @BobKamman)

HumanKind... Be Both

MGC94Author

Level 7

So, they had an attorney form the LLC in CA. No work done in NJ.

They moved on 1/2/2023 so not even really NJ residents for last tax year.

Do I do California limited liability only?

sjrcpa

Level 15

"they had an attorney form the LLC in CA"

What is the formation date of the California LLC?

FYI - setting forth all of the details in the original post is helpful.

The more I know the more I don’t know.

Sign up

Login with SSO

Let's get you signed in

Login with SSO