LLC Taxation Question

Benjamin L.
Benjamin L.
  • 3 years ago

My LLC registered in State of Delaware but I reside in Maryland. When i file taxes at the end of the year, which state would i pay the state taxes in?

Wallace T.
Best Answer

My understanding is, if your LLC is registered in Delaware but does not do any business in Delaware, there is no Delaware state income tax on the business.

That said, your situation may be unique so you really should consult with a tax attorney or accountant to be sure as (I am not either of those).

As a general rule a business pays tax to the state or states in which it does business.

Did you register to do business in Maryland? I believe a Delaware LLC would be considered a foreign entity and would not permitted to do business in Maryland.

This really seems like a question better answered by your accountant or lawyer. While I am finding this forum useful, and you will likely get a number of good answers, I would not count on the expertise of other owners when making this kind of decision.

Just my $1.20 (2 cents adjusted for inflation).

Thanks for the input.

Guess I'll have to bite the bullet and call my lawyer. Checkbook is in hand, now I have to verify my bank account balance. ;)