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November 13, 2024
Question

Tax Question for an LLC

  • November 13, 2024
  • 2 replies
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I have a one member (me) LLC for a professional organizing business. I live in NH but sometimes do work in other surrounding states, specifically Maine, Massachusetts and Vermont. Do I need to file taxes in other states?

2 replies

marctu
November 13, 2024

So, we need to look at the non-resident filing requirements for each of the three states.   I will go in the order of your question.

 

Maine

 

... , a nonresident individual present in Maine for business for no more than 12 days and earning no more than $3,000 from business activity in Maine is not required to pay a Maine tax or file a Maine return on that income.  See: Maine NR  

 

Massachusetts

 

 If you're a nonresident with an annual Massachusetts gross income of more than either $8,000 or the prorated personal exemption, whichever is less, you must file a Massachusetts tax return. You are an individual nonresident if you are neither a full-year or part-year resident.  See: Who Must File a Massachusetts Personal Income Tax Return 


Vermont

 

You must file an income tax return in Vermont:

  • if you are a residentpart-year resident of Vermont, or a nonresident but earned Vermont income, and

  • if you are required to file a federal income tax return, and

  • you earned or received more than $100 in Vermont income, or

  • you earned or received gross income of more than $1,000 as a nonresident. See 32 V.S.A. § 5861 and § 5823(b) (1-6) for information on sources of income.

See: Who Should File 

 

So review these carefully and see if you meet the thresholds for filing.

 

Thank you for the question @laurensaltman 

 

All the best,

 

Marc T.

Turbo Tax Expert

27 Years of Helping Clients

 

 

 

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November 13, 2024

Thanks for you answers. So, assuming that I have earned more than the minimum requirement in each state, then that means I need to file income tax. (Just confirming that I understand what you are saying.)

marctu
November 13, 2024

You are reading the answer correctly.  Thank you for asking the clarifying question @laurensaltman 

 

All the best,

 

Marc T.

Turbo Tax Expert

27 Years of Helping Clients

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
November 13, 2024

In general, a state can tax you if you physically work in  that state or states. This would require filing an income tax return on those states. Before doing so, the taxpayer has to consider whether the state even has an income tax, and whether there is a reciprocity agreement between the resident state and the other state. If there is taxation in more than one state there is either a credit given for taxes paid to a non-resident state or the income in the non-resident state is prorated such that only the income earned in that sat is taxed.