Confronting California Nexus and Residency Issues

California imposes substantial taxes on business within the state. It is also aggressive in pursuing enterprises if it feels the company owes California taxes for transactions conducted in California or income derived from a California source.

At the Law Office of Williams & Associates, P.C., our attorneys assist individuals and businesses both locally and nationally with nexus and residency issues, and with a broad range of additional tax challenges. A lawyer from our firm can review your situation and advise you on the best strategies for defending your business practice or remedying underpayments and coming into compliance with the tax laws.

Why Does “Tax Nexus” Matter to Businesses?

If you are a business owner, you should be informed about whether you have nexus in California, because it determines whether you will have to collect sales and use tax from customers and pay it to the California Department of Tax and Fee Administration (CDTFA), and may also require that you pay income tax, gross receipts tax, or other business taxes to California.

The CDTFA lists the following as potential indicators of nexus in the state:

• A physical business location
• A person working for you or serving your customers for you
• An affiliate residing in the state who refers business to you electronically
• Presence at a trade show

The U.S. Supreme Court recently issued a significant ruling on the sales tax nexus issue that is applicable nationwide. Consult our firm to learn how this may affect your business tax obligations.

Your business may also owe income tax to California depending on the details of your California source income.

Tax Issues Are Not Insurmountable — Contact Our Firm Today

Tax laws can be complicated, but our firm can help you resolve even the most difficult tax matters. Call our Sacramento office at (916) 488-8501 or toll-free at (800) 684-7147 to discuss your tax matter, or email us.