Can you open a LLC in a state other than the one you reside and work?

Yes, however generally the state(s) you actually conduct business in will determine which states you are required to file tax returns in, not necessarily the state where the entity was originally setup. Also if you pay tax to other states the opposing states normally allow a tax credit for taxes paid to other states. I assume by double tax you are referring to state income taxes? Bobbie has excellent information as to the federal taxation. There is also another federal option for an LLC as to tax election and that is Form 2553 can be filed to make an election to have the LLC taxed as an S Corporation, without having to file Form 8832.

For your federal taxes you really do need to make sure and under stand some of the things about an LLC at this time in your life.

Classifications

Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC’s owner’s tax return (a “disregarded entity”). Specifically, a domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and affirmatively elects to be treated as a corporation. And an LLC with only one member is treated as an entity disregarded as separate from its owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes), unless it files Form 8832 and affirmatively elects to be treated as a corporation.

Effective Date of Election

An LLC that does not want to accept its default federal tax classification, or that wishes to change its classification, uses Form 8832, Entity Classification Election, to elect how it will be classified for federal tax purposes. Generally, an election specifying an LLC’s classification cannot take effect more than 75 days prior to the date the election is filed, nor can it take effect later than 12 months after the date the election is filed. An LLC may be eligible for late election relief in certain circumstances. See Form 8832 General Instructions for more information.

www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Limited-Liability-Company-%28LLC%29

Use the search box at the www.irs.gov website for Limited Liability Company (LLC)

Hope that you find the above enclosed information useful. 03/31/2013

you may be confused about LLC's, they are only a state designation, IRS does not recognize anything other than a corporation, an s corp, a partnership or a sole proprietor

and if you register the corp in your state but actually operate that corp in another state you will register in that state and pay that state the tax due

as far as IRS is concerned your business entity is where you actually operate it

Your business is where it is if you are a sole proprietor, no matter where the LLC is opened.