This is a common question we get from prospective clients. I get a lot of clients who are on the East Coast for example and they’re in New York or North Carolina or Florida or any one of those Atlantic states and they say “well I’m all the way over here, I’ve never been to California, I don’t like to travel to California, I don’t plan on going to California so if I owe money in California for state sales tax, for state income tax liability, what can they really do to me?” And the answer to that is they can do a whole lot to you. The reason for that is while you may not have contact with California and you may not step foot in California, probably the people that you do business with or the banking institutions that you use or the third parties that you use have some sort of nexus with California. For example, if you live on the East Coast and you use Bank of America, we have Bank of America branches in California.
What Are Common Problems for Multi-State Businesses?
The depending on your level of sophistication you may rely on a CPA for tax advice.