I’ve been talking about the Nevada Development Corporation’s efforts to draw California businesses to Nevada. A business that moves to Nevada should strongly consider reincorporating in Nevada to avoid California taxes.
But assume you’re in California. Should you follow one of the many radio advertisement’s advice and incorporate in “tax-free Nevada?” Well, there’s a problem with this. It’s called nexus.
If your business is physically located in California you have to file a California tax return. Period. If you don’t the Franchise Tax Board will likely be calling upon you. And trust me, ClubCal is no more fun than ClubFed.
Tags: BozoTaxTips