Client in IL , i live in CA - What should be my CA source income on Schedule IW

[Side_Gig]

Hi 

I am a programmer  with SMLLC structure - and my clients are in IL  and NJ. 

I made LLC in CA

All my income is from out os state sources.

Can I say -

1. On schedule IW my income from CA sources will be zero.

2. Do i still have to pay $800 LLC tax? 

3. Can i make LLC in IL or NJ and avoid it?

General advise to young generation - Stay away from CA - make your life somewhere else. You will earn more and have better life ( minus weather)

[tagteam]

Thank you for posting.

[Opus 17]

1. In general, if you live in California and perform your services in California, all your income is California-sourced, no matter where your clients happen to be located.  You generally don't also owe state income tax where the clients are located, although there may be exceptions and I am not specifically familiar with New Jersey and Illinois requirements.

2. If California charges an $800 fee for an LLC formed in California, you have to pay that until or unless you dissolved the LLC.  You pay the LLC fee even if your LLC has no income.  

3. LLCs are creations of state laws.  You would need to know the laws of those states to understand the benefits and any possible adverse effects of making LLCs in those states.  However, if you physically live and work in California, all your world-wide income is taxed in California, even if you register LLCs in other states and have clients in other states.