Hello,

I have an LLC registered in NJ. This LLC will be registered in PA as a foreign LLC. The only operations for this business will occur in PA via a store selling taxable goods.

Do I pay income tax for this LLC in NJ or PA, or both?

Both, unless the states gave a reciprocity agreement.

You will claim a credit on your NJ return for the income taxes paid to PA.

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Originally Posted by AtlantaTaxExpert

Both, unless the states gave a reciprocity agreement.

You will claim a credit on your NJ return for the income taxes paid to PA.

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Thank you.. How does this credit work? Will the credit be equal to the amount I paid in taxes to PA? I want to avoid double taxation.

Is the LLC taxed as a corporation, a partnership, or a disregarded entity? If taxed as a disregarded entity, which state do you live in?