Mortgage Broker

[BHoffman]

Have a Mortgage Broker LLC here in Arizona. They have licenses to broker loans in many different states, including California. They are registered with the California Sec. of State. Have not paid the $800 fee and have never filed a CA return because they believe there is no "nexus", and they are not required to file. They do not sell real estate. They only broker loans. They have no physical presence in CA.

Can anyone advise? I'm trying hard to find info on this, but the fact that they are mortgage brokers is too specialized to get anything concrete.

Are they required to pay that $800 to CA and file a CA tax return?

[S T]

Calif

Calif is aggressive - I think if your client is registered with the Secretary of State in Calif as a LLC or a Corp/S Corp, they will have to at least pay the minimum $800 fee for the privilege of being registered to do business in California and file the appropriate tax return, showing apportionment.

Maybe some other California posters know more about nexus than I do. All my experience is with California registered LLC or S Corps ONLY operating in California.

I have had only one client (which circumstances doesn't say much) she had 80% California revenue, decided to form a Corp in Nevada, thinking she wouldn't have to report to California - DUH!
She spent a whole lot of money for nothing!

Sandy

[S T]

Update

Wanted to bring this back to the top for someone else and future reference

Mortgage brokers, might have an out in paying the $800 franchise fee to California, under the CA code section 23183 -- they are not paid by the actual California purchaser, but rather from a "big lender"

Interesting - as I had previously stated that I thought all registered Corps and LLC filed with Calif Sec of State - would be required to file and pay!

Learn something new everyday- thanks to all of the people here on the TMI Board.

Sandy