State reporting re: member-managed LLC

Posted by Gene E. Utterback, EA, RFC, AB on October 1, 2009, 2:04 pm

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> Tom Russ wrote:

>> > Benjamin Yazersky CPA wrote:

>> >

>> > > As the LLC is a CA LLC & owns real property in the state, it

>> > > obviously has

>> > > to file Fed & CA.

>> > > NJ & NY requires flow thru entities such as partnerships (LLC) &

>> > > Scorps to

>> > > file with the state if it has resident partners or shareholders.

>> > > Not sure about VA. ?You would have to ask your own CPA/tax advisor to

>> > > look

>> > > into that.

>> >

>> > Really? ?Even when said LLC has no property in the state and conducts

>> > no

>> > business within the state?

>> Wouldn't that depend on the state's definition of "conducting business

>> is?"

>> The OP specifically said that the members of the LLC manage the LLC's

>> business from their homes in NJ, NY and VA. So if their activities in

>> managing the business are sufficient to satisfy the requirement of

>> conducting business in the state, I could see how a reporting

>> requirement could arise.

>> ....... snipped .........

> Where can I find the definition of "conducting business" in NJ, NY and

> VA?

> TIA

Start with the individual state's tax departments - you can find these with
a Google search. FYI - I have been known to actually call the state
department of revenue or taxation and ASK for a senior auditor, then lay out
the specifics of the situation and ask for their opinion - of course, all
without disclosing the name or ID info of the client.

I seem to recall that NY specifically enacted a telecommuter rule that
allowed them to assess income tax on nonresidents who never actually
physically went to NY to work BUT who logged onto NY based computers to do
their work.

Good luck,
Gene E. Utterback, EA, RFC, ABA

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