California Non-Resident - Single Member LLC Business Income

[soho333]

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.

[LeonardS · Accepted solution]

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