| Agree. I don't think we triggered the requirement in CA. But I do think your office in Dearborn puts us "in the state" for biz purposes. N Neal A. Puckett, Esq LtCol, USMC (Ret) Puckett & Faraj, PC 1800 Diagonal Rd, Suite 210 Alexandria, VA 22314 703.706.9566 The information contained in this electronic message is confidential, and is intended for the use of the individual or entity named above. If you are not the intended recipient of this message, you are hereby notified that any use, distribution, copying of disclosure of this communication is strictly prohibited. If you received this communication in error, please notify Puckett & Faraj, P.C. at 888-970-0005 or via a return the e-mail to sender. You are required to purge this E-mail immediately without reading or making any copy or distribution. On Aug 2, 2010, at 10:43 AM, Haytham Faraj wrote: I don’t think we qualify under this new framework. We don’t do more than 50,000 in California payroll or 500,000 in sales to California customers. Haytham Faraj, Esq. PUCKETT & FARAJ, PC _______________________ WASHINGTON DC METRO 1800 Diagonal Road Suite 210 Alexandria, VA 22314 703-706-0442 Phone DETROIT METRO 6200 Schaefer Road Suite 202 Dearborn, MI 48126 313-457-1390 Phone 202-280-1039 Fax The information contained in this electronic message is confidential, and is intended for the use of the individual or entity named above. If you are not the intended recipient of this message, you are hereby notified that any use, distribution, copying of disclosure of this communication is strictly prohibited. If you received this communication in error, please notify Puckett & Faraj, P.C. at 888-970-0005 or via a return the e-mail to sender. You are required to purge this E-mail immediately without reading or making any copy or distribution. From: Puckett and Atwood [mailto:PUCKWOOD@COMCAST.NET] Sent: Sunday, August 01, 2010 8:01 PM To: Faraj Haytham; Puckett Neal Subject: Fwd: California defination of doing business FYI. M Begin forwarded message: Date: July 29, 2010 3:57:24 PM EDT Subject: California defination of doing business Neal California’s position on doing business in California john California For the first time, the factor-presence standard is being applied to a traditional corporate income or franchise tax. It has formerly been incorporated in only non-income based taxes, such as gross-receipts taxes. For tax years beginning on or after January 1, 2011, California defines “doing business” for purposes of income and franchise tax based on a factor presence standard modeled directly on the MTC statute. Companies with property or payroll of $50,000 or sales in excess of $500,000 to California customers will now be determined to be doing business in the state. If more than 25 percent of a company’s sales are in the state, including sales made by independent contractors or agents, the company will be subject to income and franchise tax, regardless of whether or not physical presence has been established. JOHN J RENNER II RENNER AND COMPANY,CPA, P.C. 700 N. FAIRFAX STREET SUITE 400 ALEXANDRIA, VA 22314 The information contained in this electronic message is confidential, and is intended for the use of the individual or entity named above. If you are not the intended recipient of this message, you are hereby notified that any use, distribution, copying of disclosure of this communication is strictly prohibited. If you received this communication in error, please notify Renner and Company, CPA, P.C. at 703-535-1200 or return the e-mail to sender, and purge the communication. (e-mail) immediately without reading or making any copy or distribution. Disclosure required by Internal Revenue service Circular 230: In accordance with Circular 230 Treasury Regulations we are required to advise you that any tax advise in this e-mail may not be relied upon to avoid penalties under IRC. If you are interested in a written opinion that can be relied upon to prevent the imposition of tax related to penalties please fell free to contact us. |