Stop being so pedantic. It's worthless. You had an employee, and so you were doing business in the state (this is business 101 stuff). By having an employee, you were subject to certain laws California has. e.g. You literally didn't comply with everything you were required to.
Worthless is CA charging every person even attempting to make money in CA (or in this case, in partnership with someone in CA) so much money and wanting 100 pages of forms filled out.