

Why can't Californians lie about where they live to Amazon? - phirephly

What's legally keeping us from giving Amazon a Nevada PO Box number and filing a Nevada tax return on just what we earn through the Amazon Affiliate program?
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philiphodgen
1\. Set up a real corporation outside of California.

2\. Get a real business license and everything a real business does.

3\. Report all income scrupulously to the IRS.

4\. The Franchise Tax Board will take the position that your non-California
corporation is doing business in California. You will be required to jump
through all of the Secretary of State and State tax hoops. If you don't you
have a very expensive learning experience waiting for you.

Note that last item. You now have a Nevada (for instance) corporation fully
engaged in business in California. You ran around in a circle for nothing.

And of course you have a Nevada corporation fully engaged in business as far
as the Franchise Tax Board is concerned. Which means as far as the State of
California is concerned they have the Holy Grail -- an Amazon affiliate doing
business in California.

Amazon may not be amused.

Keep it simple. If your Amazon affiliate business is so profitable, go rent a
cheap house in Las Vegas and live there. You'll be bulletproof. If your Amazon
affiliate business is marginally profitable you're going to spend all of your
money on lawyers and accountants.

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gregjor
tax fraud

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phirephly
So what? Do I incorporate in Nevada? I can't believe there's no way around
this.

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djloche
Form a business in a state that does business with amazon legally. Then do
contracting work for said business.

Talk to your lawyer/accountant and make it work. Plenty of people have done
this from the start.

