What amount of sales to California customers classifies Company B as doing business in California?

Company B is classified as doing business in California when its sales to California customers exceed the amount defined by the state tax law. Under California law, doing business is established primarily based on the level of sales generated within the state.

The threshold for classifying whether a company is doing business in California is set at $500,000 in annual sales to California customers. Therefore, when sales surpass this amount, the company must comply with California regulations, which may include the requirement to file taxes and adhere to business regulations within the state.

While different answers may represent other sales thresholds for various tax purposes or criteria, the specific figure that directly correlates with the classification of doing business in terms of sales to California customers is $500,000. This understanding is crucial for companies operating within or outside California to ensure compliance with state tax laws.