Are you a California resident or nonresident?

Each corporation, individual/sole proprietor, partnership, estate, or trust doing business with the State of California must indicate residency status along with their taxpayer identification number.

A corporation is defined as a "resident" if it has a permanent place of business in California or is qualified through the Secretary of State to do business in California.

For individuals and sole proprietors, the term "resident" includes every individual who is in California for other than a temporary or transitory purpose and any individual domiciled in California who is absent for a temporary or transitory purpose. Generally, an individual who comes to California for a purpose, which will extend over a long or indefinite period, will be considered a resident. However, an individual who comes to perform a particular contract of short duration will be considered a nonresident.

A partnership is considered a resident partnership if it has a permanent place of business in California. An estate is a resident if the decedent was a California resident at time of death. A trust is a resident if at least one trustee is a California resident.
For information on residency status, contact the Franchise Tax Board at the numbers listed below:

NOTE: An estate is a resident if decedent was a California resident at the time of death. A trust is a resident if one or more trustees are California residents.

From within the United States, call 1-800-852-5711
From outside the United States, call 1-916-845-6500
For hearing impaired with TDD, call 1-800-822-6268
Website - www.ftb.ca.gov

Are you subject to California nonresident withholding?

Payments made to California nonresident vendors, including corporations, individuals, partnerships, estates and trusts, are subject to California income tax withholding. California nonresident vendors performing services in California or receiving rent, lease or royalty payments from property (real or personal) located in California will have 7% of their total payments withheld for state income taxes. However, no withholding is required if total payments to the payee are $1,500 or less for the calendar year.

A California nonresident vendor may request that income tax withholding be waived by sending a completed form FTB 588 to the address below. A waiver will generally be granted when a payee has a history of filing California returns and making timely estimated payments. If the vendor activity is carried on outside of California or partially outside of California, a waiver may be granted.

A California nonresident vendor may request a reduction in the standard 7% income tax withholding amount by sending a completed form FTB 589 to the address below, or by completing the form online at www.ftb.ca.gov. If a reduced rate of withholding or waiver has been authorized by the Franchise Tax Board, attach a copy to this form.

For more information, contact the Franchise Tax Board:
Withholding Services and Compliance Section

P.O. Box 942867
Sacramento, CA 94267-0651
Telephone from within the U.S.: 1-888-792-4900
Telephone from outside the U.S.: 1-916-845-4900
Fax: (916) 845-9512 Email: wscs.gen@ftb.ca.gov