California Non-Resident - Single Member LLC Business Income

Hi,

I have a 1099-NEC issue from a California headquartered firm that I have derived all my 2021 business income. My SMLLC is based in NJ where I am a resident. I have made a few business trips on-site during 2021 for business meetings with my client. Other than those trips, the consulting work was remote. Based on this, I have the following questions:

Do I need to file a California 540NR tax return for 2021?
In Turbotax Home and Business edition, one of the business interview questions asks for the total business income or loss from all businesses I conducted in California while a non-resident. It shows the Federal Adjusted amount and requests the California amount. Do I use the gross amount on Schedule C or the Federal Adjusted amount? I am concerned that the gross amount would not take into account all my business expenses/deductions that I have from the Federal return.
Lastly, does my California trips create a need to do some form of income allocation between California and NJ?

Thanks in advance.

986

1 Best answer

Expert Alumni

Mar 29, 2022 8:18:32 AM

Yes, you will have to file a California 540NR tax return.

You will use the amount on Schedule C Line 31 Net profit or (loss) net income for the amount of business income/loss this accounts for all your business expenses/deductions.

No, your trip does not cause you to create an income allocation between California and NJ