IRS Compliance & PenaltiesAnswered

What is California's $800 'tax trap' if I'm doing business there but never registered?

SP
Sunil P.new member
May 8, 2026 2,310 views 1 answer
foreign-qualificationcaliforniaftbannual-tax

People keep warning me about a California $800 trap. My LLC is formed out of state and I've been doing some business with California customers but I never registered with the California Secretary of State. I assumed not registering meant I owed California nothing. Someone said I can owe the $800 anyway, plus a bigger penalty. How does that actually work if I never qualified?

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