Tax Year Prior to 2020: State Tax Filing in CA

[strezo66]

I live in California but my S-Corp is in Colorado.  Do I need to file business returns for both Colorado and California?

[WKins2]

Yes, you will need to file in at least these two states since you need to file a return in the state your S-Corporation is located, and then a return in the state you live in as well. TurboTax will be able to help you prepare and file in both states. 

[strezo66]

Thank you.

[strezo66]

Thanks again but what am I filing if I do not have a CA Corp number?  My EIN?

[VictorW9]

Do you do business in CA? If the answer is yes, then you would have applied for a CA entity registration and your S corp filing will include CA with income apportioned appropriately to the states that you do business and a return filed for each state. 

If you don't do business in CA, then your K-1 will be included in your personal taxes which you will file with federal and state.  

[strezo66]

I have not filed in  CA but my business in over the internet.  That is where my confusion lies.

[VictorW9]

Do you charge sales tax. If you do collect sales tax or your product is subject to sales tax, then depending on your sales volume in the state you may be subject to sales tax in CA. You may want refer to the recent case law: South Dakota vs Wayfair that established nexus. 

[strezo66]

Hi Victor,

  I do not.  No sales tax.  Just internet income on occassion

[VictorW9]

Then I believe you should be fine and I don't think you should worry about whether you need to file your S corp in CA. You don't seem to have any compliance issues you need to worry about.