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    ddkumar45's Avatar
    ddkumar45 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Nov 9, 2012, 09:11 AM
    Income tax on LLC doing business out of state only
    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?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Nov 9, 2012, 10:31 AM
    Both, unless the states gave a reciprocity agreement.

    You will claim a credit on your NJ return for the income taxes paid to PA.
    ddkumar45's Avatar
    ddkumar45 Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Nov 9, 2012, 11:28 AM
    Quote Originally Posted by AtlantaTaxExpert View Post
    Both, unless the states gave a reciprocity agreement.

    You will claim a credit on your NJ return for the income taxes paid to PA.
    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.
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
    Tax Expert
    		  
    #4

    Nov 9, 2012, 04:29 PM
    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?
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