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How to structure payroll between a Texas PLLC and a California PC for legal and tax compliance.

View Dolan W.
5.0 (421)

Business

PLLC Operating Agreement

California

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Asked on Jan 27, 2025

How to structure payroll between a Texas PLLC and a California PC for legal and tax compliance. I own a business in Texas (PLLC) that is a professional business where I am the owner and only W-2. I have moved to California and have remained owner/W-2 for this company in Texas, but also am registered with the California EDD to ensure taxes are paid in this state since that's where I live. I started another business in California (Professional Corporation), because I am not allowed to have an LLC in California therefore I cannot register my current PLLC in this state. This new business has not earned any income yet, so my initial questions are: 1. How do I make myself a W-2 for this new company? I will remain a W-2 for my other company as well. I had a tax professional do this for my previous business, but I am wanting to do this myself this time. 2. My current billing platforms directly pay my PLLC. Is it legal to just have my current PLLC pay the PC for services rendered because of how the platform works, or do I need to have services going directly to the company (either PLLC or PC)?

Dolan W.

Answered on Jan 27, 2025

Hello! My name is Dolan and thank you so much for contacting me! I just had a few quick questions for you: You said you were registered with EDD, but to clarify, you aren't taking out any payroll taxes or anything yet, correct?

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