legal, taxesI’m considering using EarthClassMail as a virtual address and registered agent service. This would use the 94120 virtual zip code which is “located” in San Francisco and contained within the 94105 zip code. I wouldn’t be operating in San Francisco, but I would receive my mail there.
My concern is that if I use a virtual address in San Francisco, I may be on the hook for SF business tax. San Francisco does have the Mid-Market Tax Break (Twitter Tax Break) and I’m not sure if this would apply to a virtual address.
From the San Francisco Business and Tax Regulations Code:
SEC. 6.2-12. NEXUS: “ENGAGING IN BUSINESS WITHIN THE CITY.”
The taxes imposed by Article 12-A (Payroll Expense Tax Ordinance) and Article 12-A-1 (Gross Receipts Tax Ordinance), and the registration fee imposed by Article 12 (Business Registration Ordinance) shall apply to any person engaging in business within the City unless exempted therefrom under such Articles. A person is “engaging in business within the City,” within the meaning of this Article, if that person meets one or more of the following conditions:
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(b) An employee, representative or agent of the person maintains a fixed place of business within the City for the benefit or partial benefit of the person; or
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Since your agent, the “virtual office” provider, maintains a fixed place of business within the City for your partial benefit, you are indeed subject to city registration and taxes.
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