Sub Specialty Contractor

We are a Kansas based crane rental company that has not transacted business in California previously.  We have an opportunity with an existing customer to rent a crane that will be picked up by the customer in Kansas and they will transport it to California for a project they are working on.  If we proceed, we won't have any labor in California, only the equipment.  What licenses, permits, and taxes should be considered in this transaction? 

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Dan Novascone
CFO
Wilkerson Crane Rental
Bonner Springs KS
(913) 238-7030
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Hi Dan, 

This transaction would be considered California source income and would be subject to California state income tax.  Rentals are also subject to sales tax in California.  I would recommend getting the California state tax guide from CFMA as it has links to all of the appropriate agencies etc to register and do business in California.

Regards, Becky

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Rebecca Jenne CPA, CCIFP
Controller
International Lining Technology, Inc.
Reno NV
(775) 284-2929
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