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Various online resources claim that if you register a company in another state while living in California, then under California law, you have to also register the company in California as a "foreign" entity, thus making the whole process cost twice as much and requiring you to pay twice as much in taxes, essentially making the whole approach useless.

Is this true or false? Reliable government sources would be much appreciated, but I'll take any insight at this point, just to have some foundation for further research.

  • You only pay taxes once of monies earned -- but you will need to register with the Californian tax board when you have a Delaware (the popular choice) corp -- you will pay some registration fees (not taxes) in both states -- if you are going to build a company with several hundred employees then that is not significant, if you are a one-man-band-consultant you probably don't need a Delaware corp – Soren Dec 31 '16 at 6:31

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