Los Angeles, CA asked in Tax Law and Business Formation for California

Q: Is using a virtual address to form an LLC considered tax evasion if I don’t live in the state of the virtual address?

Is using a virtual mailbox address to form an online business considered tax evasion if it isn’t in the state where you live?

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1 Lawyer Answer
James L. Arrasmith
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  • Tax Law Lawyer
  • Sacramento, CA
  • Licensed in California

A: Using a virtual mailbox address to form an LLC in a state where you do not reside does not, by itself, constitute tax evasion. However, misrepresenting the primary place of business or not paying appropriate state taxes where the business operates can lead to tax liabilities and penalties. It's crucial to accurately report all income and adhere to the tax obligations of both the state of formation and any state where the business operates. It's important to consult with an attorney on the matter to assess the specific facts and advise on the best course of action.

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