RL124
New Member

Freelance work from home in California

I plan to start working as an independent consultant. All my work will be done on the computer/phone while I am physically at home, which is located in California. I have two questions:
1. If my clients are not based in California, do I need to report my income to California state?

2. If I incorporate an LLC, must it be formed or registered in California?

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You should seek professional guidance with respect to organizing an LLC.

 

Regardless, the state can impose an income tax upon you since you are a resident of the state.

 

Further, California (as do most states) require foreign LLCs (i.e., LLCs organized in other states) to register as doing business in the state. 

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rjs
Level 15
Level 15

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To clarify, since you are a California resident, all of your income is subject to California tax, no matter where the income is from. You must report all of your income on your California tax return.