Can I have a Texas LLC or s Corp owned by me in California?

(Last Updated On: July 10, 2018)

Question – I’m getting conflicting info from TX and CA tax attorneys. Can I have a Texas LLC or s Corp owned by me in California where the physical work is being done in Texas and I am managing the website in California, only have to pay Texas taxes on it? How do I accomplish this?


Our response –You can do this, however, you are adding unnecessary work and cost to do so.  You’re required to qualify that entity in California because you work in California as a principal.  That would mean that you’d have to pay the franchise tax since that is where you are performing the work.

So, essentially if you form the Texas entity, that entity would have to be qualified in CA. Unfortunately, it’s the price of “doing business” in each of the states.