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pkhadka
February 19, 2025
Question

State Tax filling for LLC operating in different state

  • February 19, 2025
  • 1 reply
  • 0 views

I own a single-member LLC registered in Illinois. It is for selling items online on Etsy. The business is run by my family members, who are residents of South Carolina (not members of LLC), and they handle the shipping of the items and day-to-day operations. Do I need to file state tax in both states? 

    1 reply

    V
    Vanessa A
    February 19, 2025

    Yes.  If the operations are physically taking place in SC, then you would need to file a return for SC.

     

    Then since you are a resident (I am assuming since it is registered in IL) you will need to file the IL return to report your income as ALL income from ALL sources must be reported on your resident return. 

     

    When filing you will need to complete your non-resident state first and then your resident state claiming a credit on your resident state for taxes paid to your non-resident state. 

     

    Multiple States

    File Non Resident State Return

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      P
      pkhadkaAuthor
      February 19, 2025

      Ok. thanks. Do i need to register the LLC in SC also? By operating, they ship items from there. Does that change anything? 

      CatinaT1
      CatinaT1
      February 19, 2025

      No, you do not register a business in multiple states.

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