Decision Charts for Entertainment Industry Independent Contractors

• A corporation
• An LLC
• A partnership

Either of the following is true:

• You are qualified with the California Secretary of State to do business in California.
• You have a permanent place of business in California.

• You should complete FTB Form 590, Withholding Exemption Certificate, and give it to the withholding agent.
• No withholding required with valid Form 590.
• File any required California tax returns.

An individual

You are a California resident.

• You should complete FTB Form 590, Withholding Exemption Certificate, and give it to the withholding agent.
• No withholding required with valid Form 590.
• File any required California tax returns.

A tax-exempt entity

You are exempt from tax under federal law.

• You should complete FTB Form 590, Withholding Exemption Certificate, and give it to the withholding agent.
• No withholding required with valid Form 590.
• File any required California tax returns.

• A corporation
• An LLC
• A partnership

Both of the following are true:

• You are not qualified with the California Secretary of State to do business in California.
• You do not maintain a permanent place of business in California.

• Your withholding agent must withhold 7 percent from all California source income payments to you that exceed $1,500 in a calendar year. See the charts below to request waived or reduced withholding.
• Before January 31 following the close of the calendar year, your withholding agent must provide you a copy of a completed FTB Form 592-B, Resident and Nonresident Withholding Tax Statement, showing the amount you were paid and the amount withheld. 
• You claim or flow the withholding by filing any required California forms or returns.
• File the 592-B copy with your California return.

An individual

You are not a resident of California.

• Your withholding agent must withhold 7 percent from all California source income payments to you that exceed $1,500 in a calendar year. See the charts below to request waived or reduced withholding.
• Before January 31 following the close of the calendar year, your withholding agent must provide you a copy of a completed FTB Form 592-B, Resident and Nonresident Withholding Tax Statement, showing the amount you were paid and the amount withheld.
• You claim or flow the withholding by filing any required California forms or returns.
• File the 592-B copy with your California return.

• A corporation
• An LLC
• A partnership
• An individual

Both of the following are true:

• You or your withholding agent submit to us FTB Form 588, Nonresident Withholding Waiver Request, allowing us at least 21 business days before you receive payment of California source income.
• You and your withholding agent receive a waiver approval letter from us.

No withholding required with a waiver approval letter from us.

• A corporation
• An LLC
• A partnership
• An individual

Both of the following are true:

• You submit to us Form 589, Nonresident Reduced Withholding Request, allowing us at least 10 business days before you receive payment of California source income.
• We approve your request.

• We will send you and your withholding agent a confirmation letter stating the amount to be withheld.
• Your withholding agent will withhold the amount stated on the confirmation letter.
• Before January 31 following the close of the calendar year, your withholding agent must provide you a copy of a completed FTB Form 592-B, Resident and Nonresident Withholding Tax Statement, showing the amount you were paid and the amount withheld.
• You claim or flow the withholding by filing any required California forms or returns.
• File the 592-B copy with your California return.