AZ 120S Required for MO LLC where sole shareholder moved to AZ?

[kamckinley]

Hi All,

I apologize if this is a silly question...

I have a client who created an LLC in Missouri back in 2004 and elected S Corp for tax treatment. She had activity for 2 years, then nothing after 2005. She moved to AZ in 2011.

I have continued to file 1120S and MO-1120S but never filed an AZ return for her LLC. Her initial LLC and registered agent address was in MO. She never changed the registered agent address, it's still listed as MO. There has never been any activity in AZ, other than she (as the only owner) lives in AZ.

Should I have been filing AZ 120-S all these years even though there is no activity and the LLC is still registered in MO?

Thanks in advance,
Kristine

[Snaggletooth]

Missuri Only

I don't think so, Kristine. The LLC is registered only in Missouri with the Secretary of State, and unless there is Arizona income within the LLC, I can't imagine a requirement exists to file anything in Arizona, much less an S-corp return.

The complexion changes if there suddenly is Missouri income within the LLC. No Arizona S-corp required, but the income is reported on the owners' Arizona return. The owner must file a Missouri non-resident return, and is entitled to a credit on his Arizona return for the amount paid to Missouri.

The complexion changes again if there is Arizona income within the LLC. Arizona foreign S-corp return is now required with an Arizona K-1 for the owner(s). So long as the LLC is registered in Missouri, then Missouri domestic tax returns will be required for Missouri as well.

Strange that for LLC purposes, the "domestic" tax return is for Missouri and the "foreign" tax return (if necessary) is for Arizona. However, for the owner, Missouri is the non-resident return, and Arizona is the resident return. There are action items which can straighten out this goofy situation and the owner should take this action.

[kamckinley]

That's what I thought, but just wanted to be sure. Thanks for your help!