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If I have an LLC in another state do I pay state taxes there or my state of residence?
The LLC owns a rental property and the state it is in does not have a state income tax.
3 Answers
- Bostonian In MOLv 76 years ago
The state where you operate can tax that income. Since it has no income tax, no problem there. Your home state can tax your worldwide income so it's taxed there as well.
If it had been taxed in the state where you operate, you'd get a credit on your home state's return for the out-of-state taxes paid, generally the lesser of the tax paid or what your home state would have collected on that income.
