I opened a Single Member LLC (taxed as a disregarded entity) in Colorado (using my parents address) but I live and work a separate full time job in California. My LLC mainly just collects royalty checks from digital sales on an online store.
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It depends. Quite honestly, it is likely you have something to report, either to Colorado, California, or both. The following information should help guide you:
1. Do you need to file anything with Colorado? Although you are correct that none of your income is reported to Coloarado, your LLC is registered in Colorado. All states have periodic requirements for LLC registrations. Please note the following excerpt from this website (Click on link for more information): Business FAQs - Colorado Secretary of State:
Periodic reports
Q1. What is a Periodic Report? Why do I have to file one? A1. Reporting entities, such as limited liability companies, corporations, nonprofit corporations, and foreign entities, are required by law to submit a Periodic Report each year to the Secretary of State. Refer to the glossary for a full list of reporting entities.Online filing is a minimal cost but is a requirement to keep your Colorado LLC in good standing.
2. Do you need to file anything in California? It really depends. Please note the following link (click for more information): Do I have to qualify or register a foreign (out–of–state or out–of–country) business entity?
When you read the information, the website itself suggests legal counsel to determine if you need to register or qualify your out-of-state LLC in California. You may wish to do precisely that to ensure you are fulfilling CA legal and registration requirements.
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