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My client who is domiciled in California formed an LLC in Arizona - he is also a member manager. The business is in Arizona, and all transactions are in Arizona. I know since the member manager is domiciled in CA, the Arizona LLC is considered doing business in CA, so the Arizona LLC needs to file CA form 568 and pay $800 LLC tax. My questions are:

  • Do I need to register with the CA Secretary of State?
  • When I pay the $800 to CA, can I show that on the AZ return and claim a credit?
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Your client? What are you then? A CPA? There are professional forums and resources, it would bring a malpractice suite against you if your client ever found out you were looking for information here.

Having said that...

My questions are, do I need to register with CA SOS

Yes. You have to register as a foreign LLC and provide the SOS number on the form 568.

and when I pay the $800 to CA, can I show that on the AZ return and claim a credit?

I would say no, this is not an income tax and as such cannot be used as a credit to offset another state's income tax. You take it as a deduction.

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