California cannot impose taxes on a corporation that is incorporated in Arizona and doing business in California and thirty-two other states.

Question

Quizplus · Accepted Answer

California can impose taxes on corporations that are doing business in California, even if they are incorporated in another state. This is known as the "doing business" standard, which looks at factors such as sales, property, and payroll within the state. Therefore, California can impose taxes on the corporation in question as long as it meets the criteria for doing business in California.

California Cannot Impose Taxes on a Corporation That Is Incorporated