Need help clearing my mess – C-Corp in NV while I am expecing income in CA.?
I have incorporated in NV while I live in CA. I don’t have income in CA at present but operate this NV business which is web based from CA (as owner). While filing a tax return for 2008, my tax advisor asked me to send $ 800 to FTB (in CA) for which they didn’t have any knowledge. I finally got temp. corp# from CA against which it is applied. I have not yet registered with SoS in CA.
Now, I want to use this corporation to do consultancy work in CA (full time income through contracting). Naturally, I need to put the S-Corp in CA back to functional level and meet all needs/legalities so I can do corp to corp deal.
Choices I have:
(1) Should I form new S-Corp (same name as in NV) in CA and disolve NV corp? Will I keep the same fed.tax ID I have already?
(2) OR Should I make sure that it is registered as foreign corporation in CA and continue to operate it from CA (while earning additional income through my own consultancy)?
Help me choose one of the two choices above and any extra choice if I have.
Also should I do 1099 in my consultancy/contracting with another corporation or do corp-to-corp? Which is better for me from taxation purpose?