State Filings

[Super Mom]

If a NC LLC makes profits by working in another state, I need to do an LLC return for that state as well as a requirement for a personal return in that state as well, correct? IF the profits are made in another state with no income tax, THOSE profits from work in that state is not on NC, correct?

[Super Mom]

Would income made in another state maybe be an "other deduction" on the state K-1?

[Super Mom]

Would income made in another state maybe be an "other deduction" on the state K-1?

Nevermind, just realized that the states income would be on that state's K-1--no need for a deduction. I would greatly appreciate help from anyone experienced with this situation, as this is a completely new learning experience for me. I complete the LLC's return as well as the personal so I will be concerned with both issues. Thanks!!!

[Burke]

I am assuming you are doing a 1065? Or an 1120-S? Since a single-member LLC would not file a separate return, but a Sche C attached to the 1040. You would have to check each foreign state's thresholds for filing to determine whether you need to file in those states. Even if another state has no income tax, NC starts with federal income so it would show up in there on the NC return.

[Super Mom]

I am assuming you are doing a 1065? Or an 1120-S? Since a single-member LLC would not file a separate return, but a Sche C attached to the 1040. You would have to check each foreign state's thresholds for filing to determine whether you need to file in those states. Even if another state has no income tax, NC starts with federal income so it would show up in there on the NC return.

Yes, it is a 1065. Thanks for your help!

[Super Mom]

Are you referring to the apportionment factor? The state LLC return says 'sales factor', I'm assuming gross sales are apportioned that way on the state return?????

[JohnH]

The LLC will likely need to "qualify" in the other state of operation. That means filing organizational documents in much the same manner as any entity formed in the other state, filing annual reports, paying annual fees, etc..

Not sure how this all works with LLC's, but that's the way it is with corporations. Then you must allocate income to each state, sometimes based on revenue only in each state. But in other cases you must calculate a ratio using sales, assets located in each state, and payrolls. Because of the way these ratios are calculated in each state, at times the entity pays tax on more than 100% of its income.

[Super Mom]

1065 and NC 403 apportionment

Ok, I'm sleepy right now, so not really thinking clearly! I assume using the single sales factor in NC is an option, when I fill out the form the right amount shows as income within NC, but the NC K-1's show ALL the income, just like Fed!! Anyone know what I'm doing wrong?