California Tax Crush
Does anybody know if a seller can request to not have your product in California warehouses when selling through Fulfillment by Amazon? I got hit hard by the California Franchise Tax Board. If you are an out of state seller but have product held in a California warehouse and have sales in California that gives you nexus in CA and you are responsible to pay CA franchise tax. The minimum CA franchise tax due is $800. So, if have nexus in CA and your sales in CA are $800 or less you actually lose money selling in CA. I had $5500 in sales and had to pay $800 minimum franchise tax. That is a ridiculous 15% franchise tax. Typically franchise tax is in the 1% range. Apparently CA is desperate for money with so many taxpayers fleeing the state. This franchise tax is discouraging small business across the country.
submitted by /u/Rusty_Seller789
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