[BennyM]

Hi,

I have a tax question please; If a C Corp in Nevada takes an order (and payment) from a company in California for landscaping services, but hires a subcontractor based in Nevada to do the physical work needed in California, would the C Corp be subject to California taxation? In other words, would California require taxes paid by the C Corp when there's merely a job order and payment coming from California, even though the physical work was done by another company?

Thanks,
BennyM

[MukatA]

You are paying to the subcontractor, which must be reported on 1099-misc. The subcontractor is responsible for CA taxes as they are present in CA.
I do not think that the C Corp is subject to CA state tax.