1. Set up a real corporation outside of California.
2. Get a real business license and everything a real business does.
3. Report all income scrupulously to the IRS.
4. The Franchise Tax Board will take the position that your non-California corporation is doing business in California. You will be required to jump through all of the Secretary of State and State tax hoops. If you don't you have a very expensive learning experience waiting for you.
Note that last item. You now have a Nevada (for instance) corporation fully engaged in business in California. You ran around in a circle for nothing.
And of course you have a Nevada corporation fully engaged in business as far as the Franchise Tax Board is concerned. Which means as far as the State of California is concerned they have the Holy Grail -- an Amazon affiliate doing business in California.
Amazon may not be amused.
Keep it simple. If your Amazon affiliate business is so profitable, go rent a cheap house in Las Vegas and live there. You'll be bulletproof. If your Amazon affiliate business is marginally profitable you're going to spend all of your money on lawyers and accountants.
