Do I owe California's $800 franchise tax if my foreign-owned LLC is registered in CA but earns no CA income?
I registered my single-member LLC in California because my registered agent is there. I'm a non-resident alien living in Germany and all my clients are outside the U.S. I just got a notice from the California Franchise Tax Board saying I owe $800 minimum franchise tax.
Is this real? I thought since my LLC is a disregarded entity with zero U.S. income, I wouldn't owe any state taxes. The $800 seems like a flat fee regardless of income. Do I also need to file a California tax return on top of the federal Form 5472?
If I dissolve the LLC in California and re-form in Wyoming or Delaware, can I avoid this tax going forward?
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