Questions

Can I have an Ohio business with a California address?

I opened an LLC while living in Ohio, then I moved to Georgia. To have a more permanent address, I got a VirtualPostMail.com address in Walnut, California. I wonder if there are tax or other implications and if the IRS allows this option.

4answers

You can live wherever you want and have a business wherever you want. Especially with an LLC.

The IRS doesn't care because with an LLC, the profit flows through the business to it's Members, to the extent of their basis. So if you own 75% and another Member owns 25%, then the profits are distributed that way and reported on the "K-1" with the federal return. LLC's pay no federal income tax as it is al allocated to the Members.

The only issue is at the state level wherever you live. If you meet the residency test for that State (which you can find online), then that is where your state taxes - if any - would be calculated and paid based on your K-1 return. You certainly wouldn't want it to appear you have a CA residence with their tax level!

I would suggest that you establish residency wherever you live. I too have a virtual mailbox AND live outside of the country. Doesn't affect my LLC in the states at all.

Feel free to reach out if you need further help.


Answered 10 years ago

As long as you pay your taxes, I don't think any government cares. However you are just causing yourself more reporting issues and problems. You have to file corporate paperwork in both states, is it worth the paperwork. Easier to get either a new corp, or a new register agent in location where corp is. Anyway the bigger problem I see is; how do your customers see it, are you losing business because of it, are they thinking your hiding something... I see this all the time with people selling in Florida, but have a Nevada Corp. People don't trust them as much, And isn't sales all about trust.


Answered 10 years ago

My answer will:
1️⃣ Give you a short answer up front
2️⃣ Explain the real-world tax and compliance issues
3️⃣ Point out what others said that’s incomplete, incorrect, or not practical for running a lean business

✅ TL;DR (Too Long; Didn’t Read)
Yes, you can operate an Ohio LLC with a California mailing address — including a virtual one like VirtualPostMail.com — but there are state-level tax and registration consequences if you’re actually doing business in California.

The IRS doesn’t care about your mailbox. But California might, and that’s where the real risk is.

🧠 Full Answer
Let’s break it down clearly and practically:
🧾 1. IRS Perspective (Federal Taxes)
✅ The IRS doesn’t care where your virtual mailing address is.
Your Ohio LLC will pass through income to your personal return, and you’ll report it from wherever you actually live (Georgia, in your case).
So yes — the IRS is fine with a California mailing address.

🧾 2. State Compliance (Where It Gets Tricky)
Now we enter California’s territory, and this is important:
California’s Franchise Tax Board (FTB) considers a company to be “doing business” in California if it:
Has a physical address, employee, or agent there
Reaches a certain level of sales or payroll within CA

Uses a mailing address that suggests physical presence

⚠️ If California believes your LLC is “doing business” there, they can:
Require you to register as a foreign LLC in California
Charge you the $800 annual minimum franchise tax
Require you to file state tax returns

If you’re just using a VirtualPostMail box, and have no sales, inventory, staff, or clients in California, you’re probably fine — but keep it clean and don’t represent it as a “location” on your website.

🗺️ 3. Where You Actually Live (Georgia)
Since you’ve moved to Georgia:
You’ll file state tax returns in Georgia as a resident
You won’t pay state tax in Ohio anymore unless your LLC has income from Ohio clients
If Georgia sees income from your LLC, it gets taxed on your personal return

🔍 What Others Missed or Got Wrong
❌ “The IRS doesn’t care” – True, but California does, and that’s the real issue here.
❌ “Just do what’s easiest” – Not helpful. Using a California address might create a $800/year mistake if you’re not careful.
❌ “Customers won’t trust you with mismatched states” – Overblown. As long as you’re upfront and clear on your website about where you operate, a mailing address isn’t a trust-breaker.

✅ What they got right: The IRS cares about income, not mailing location — and it’s your state of residence (Georgia now) that handles personal income tax.

🧭 Final Word
✅ You can keep your Ohio LLC and use a California virtual mailbox
✅ But don’t market it as a “California office” unless you’re registered there
✅ Be mindful of California's doing-business rules, or you could owe $800+ unexpectedly
✅ Report your income in Georgia, where you live

Was this helpful? If yes, an upvote is appreciated.
Still unsure if your California address creates a tax risk?
Happy to go through the details with you on a quick call.


Answered a month ago

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