I have a CA Single Member LLC and do work for a California client. Contract work is between client and LLC.

I move from CA to WA and establish residency there. I perform ALL work outside of CA.

My understanding is the LLC must pay the $800 minimum tax.

My (managing member) income from the LLC is not taxable by CA since all work was done outside of state lines.

Is this correct?

  • Potentially, though I have heard that California might try to collect the taxes anyway, and you might have to prove (with receipts etc.) that you didn't cross state lines into California at all during the months you were working for your California client, or at least pay taxes for the days you did. They're obviously suspicious it could be a fiction created for the purposes of saving taxes.
    – xirt
    Dec 10, 2017 at 5:43


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