<story><title>I employed a California resident, so now I’m subject to its regulations</title><url>https://ccleve.com/p/dont-hire-remote-employees-living</url></story><parent_chain><item><author>r3dey3</author><text>At least California is generous enough to require at least 25% of payroll. Most states, if you have even a single employee in that state you need to register as a business in that state (and pay associated filing fees and taxes).&lt;p&gt;This isn&amp;#x27;t really news. 15 minutes of reading about staring an LLC in Deleware and you&amp;#x27;ll find you have to register in the state you live as well - so it shouldn&amp;#x27;t be a shock you have to file in places you have employees.&lt;p&gt;1099 is definitely the way to go for as long as you can - people still get social security credit.&lt;p&gt;IANAL, this isn&amp;#x27;t legal advice, blah blah blah</text></item></parent_chain><comment><author>e40</author><text>Words of advice, though, if the business is in CA don&amp;#x27;t hire contractors via 1099 unless the work really does fall under the legal definition of what a 1099 can be used for (in CA).  If they appear to be an employee, in any way, then they should be an employee.  The CA EDD loves auditing and assessing back taxes and fines.  And all it takes is a disgruntled contractor to call the EDD.</text></comment>
<story><title>I employed a California resident, so now I’m subject to its regulations</title><url>https://ccleve.com/p/dont-hire-remote-employees-living</url></story><parent_chain><item><author>r3dey3</author><text>At least California is generous enough to require at least 25% of payroll. Most states, if you have even a single employee in that state you need to register as a business in that state (and pay associated filing fees and taxes).&lt;p&gt;This isn&amp;#x27;t really news. 15 minutes of reading about staring an LLC in Deleware and you&amp;#x27;ll find you have to register in the state you live as well - so it shouldn&amp;#x27;t be a shock you have to file in places you have employees.&lt;p&gt;1099 is definitely the way to go for as long as you can - people still get social security credit.&lt;p&gt;IANAL, this isn&amp;#x27;t legal advice, blah blah blah</text></item></parent_chain><comment><author>andrewljohnson</author><text>California has a really strict view of what a contractor is, so 1099s are not as feasible as they seem in CA: &lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;www.dir.ca.gov&amp;#x2F;dlse&amp;#x2F;faq_independentcontractor.htm#:~:text=AB%205%20requires%20the%20application,Commission%20(IWC)%20wage%20orders&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;www.dir.ca.gov&amp;#x2F;dlse&amp;#x2F;faq_independentcontractor.htm#:~...&lt;/a&gt;.&lt;p&gt;IANAL, but if you are building a software product, and you hire someone to do software development work on your core product, then CA may easily take the view that person is an employee because of the ABC test (as of September 2019).</text></comment>