R
Robert Jones
Our corporation did work in California last year and our
client withheld taxes from our bill. That is understandable.
However, they only withheld $230 and it appears from what I
am seeing in the California tax documents that they have a
minimum franchise/income tax of $800 for corporations. Does
anyone know if that is the case? Do we owe an additional
$570?
Do any other states have this kind of non-resident tax?
I have also seen messages from others about the California
"jock tax". If I, as an employee of a non-California
corporation, go to California for a convention where my
company makes no money but I get paid by my company for
being there, do I owe PERSONAL income tax to California? Do
I owe personal income tax to California if I spend 2 or 3
days in that state on a project and my company DOES receive
income from the project?
We also sell software via phone and Internet to all states
in the U.S. I know that we are SUPPOSED to collect sales tax
and remit it to all states outside our own, but that is a
virtual impossibility, given the gigantic number of taxing
authorities in each state. Is there a practical way to
accomplish this, or do we just notify each customer that
they are responsible for paying "use tax" or whatever it is
to their own taxing authority?
We are a small business and if we had to pay $500 minimum
tax to each state that we do business in, or ship software
to, we would be out of business overnight.
Thanks,
Robert
client withheld taxes from our bill. That is understandable.
However, they only withheld $230 and it appears from what I
am seeing in the California tax documents that they have a
minimum franchise/income tax of $800 for corporations. Does
anyone know if that is the case? Do we owe an additional
$570?
Do any other states have this kind of non-resident tax?
I have also seen messages from others about the California
"jock tax". If I, as an employee of a non-California
corporation, go to California for a convention where my
company makes no money but I get paid by my company for
being there, do I owe PERSONAL income tax to California? Do
I owe personal income tax to California if I spend 2 or 3
days in that state on a project and my company DOES receive
income from the project?
We also sell software via phone and Internet to all states
in the U.S. I know that we are SUPPOSED to collect sales tax
and remit it to all states outside our own, but that is a
virtual impossibility, given the gigantic number of taxing
authorities in each state. Is there a practical way to
accomplish this, or do we just notify each customer that
they are responsible for paying "use tax" or whatever it is
to their own taxing authority?
We are a small business and if we had to pay $500 minimum
tax to each state that we do business in, or ship software
to, we would be out of business overnight.
Thanks,
Robert