The FTB’s “Doing Business” Trap For Foreign LLCs With California Managers,...
According to the California Franchise Tax Board, a limited liability company classified as a partnership must do all of the following: File Form 568 (limited liability company return of income); Pay an...
View ArticleBill Aims To Make Foreign Nonqualified LLC Contracts Voidable
As discussed in prior posts, “transacting intrastate business” is not the same as “doing business”. See You may Be Doing Business in California Even When Not Transacting Intrastate Business. The...
View Article60 Acres And A Lawsuit Challenging The FTB’s Interpretation of “Doing Business”
Swart Enterprises, Inc. is an Iowa corporation. It operates a farm with some 60 acres of crop land in Kansas. Swart has no physical presence in California. It owns no real or personal property in...
View ArticleWhy Your LLC May Be Doing More Than You Think In California Even When It’s...
Until two years ago, determining whether a company was “doing business” in California depended upon whether it was “actively engaging in any transaction for the purpose of financial or pecuniary gain...
View ArticleFTB Issues Legal Ruling Addressing Filing And Franchise Tax Obligations of...
I’ve written several posts on discussing the meaning and ramifications of “doing business” for California tax purposes. See, e.g., Why Your LLC May Be Doing More Than You Think In California Even When...
View ArticleThe Franchise Tax Board’s Doing Business Legal Ruling – Ex Nihilo, Aliquid Fit
Today’s post will try to put the Franchise Tax Board’s recent Legal Ruling 2014-01 in perspective by imagining the following inquisition by the Franchise Tax Board: FTB: We suspect that you are doing...
View ArticleJudge Rules Against FTB In “Doing Business” Definition
Over a year ago, I wrote about an Iowa corporation, Swart Enterprises, Inc., which operates a 60 acre farm in Kansas. Swart has no physical presence in California. It owns no real or personal property...
View ArticleWhat’s So Special About An 80% Doing Business Threshold?
In yesterday’s post, I dipped into the SEC’s proposed amendments to Rule 147, a safe harbor for intrastate offerings exempt from registration pursuant to Section 3(a)(11) of the Securities Act of 1933....
View ArticleSuspension By The Franchise Tax Board
Yesterday’s post concerned the two circumstances in which the Secretary of State might suspend a corporation. The California Franchise Tax Board will suspend a corporation if it fails to pay taxes,...
View ArticleO Frabjous Day! Court Holds Passive Member Is Not “Doing Business”
The State of California imposes its franchise tax on every corporation (other than a bank, financial corporation or exempt corporation) that is “doing business” in California. Cal. Rev. & Tax Code...
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