You were told wrong. Any LLC that does business or has a location in
California owes (rather you owe) a minimum $800/yr franchise tax for
the priv of operating in the great state of California.

http://www.methvenlaw.com/Handout_Is...good_idea.html

"Finally, if you have an out-of-state corporation or LLC but have
headquarters or any office or "presence" (telephone number, home
office, P.O. Box, etc.) in California, you have to register that LLC or
corporation as an out-of-state entity with the State of California -
and the filing fees and minimum annual tax are the same as if you set
up the entity in California. Given the additional costs of setting up
an out-of-state entity, frequently going that route is more expensive
that simply using a California entity in the first place."



-Robert