[taxabletalk] Russ: Bozo Tax Tip #7: Incorporate In Nevada

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Posted by Russ:
Bozo Tax Tip #7: Incorporate In Nevada
http://www.taxabletalk.com/posts/1207533224.shtml


   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.