I'm looking for a good advice. (Yes, I'm assuming this is not a legal advice and you're unlikely professional accountants here. ;) But real world experience is what values.)

We're forming a new S-corp. I'm planning to do this in Delaware. However, both me and my partner are located in California. We'll do consulting and few Internet ventures under it, however, during the first days (months), the most income will come as consulting for other California company.

I heard that California state requires everyone who do business in CA to have a special entity of company BOTH in CA and state, where you're originally incorporated in. (This is not an actual quote, but something that I heard. I might be wrong.)

Do you have any better knowledge about this? I'd really appreciate your help.

On the other note, I'm also planning to run the company myself, including accounting. I'm pretty much okay with Quickbooks or whatever is needed to keep the books. However, my knowledge is pretty limited on taxation issues. So I'd also be very thankful on ideas of outsourced accountants and the typical cost of such service. References would be great.

Thanks.