If we are an Arizona Based Multimember LLC with an active member in Missouri do we need to file our business taxes in Missouri

[rYanOWCM]

Any help you can provide would be great, first time filing as we are a new LLC, just not sure about the Missouri piece.  We do not have employees, 3 partners and we are a service provider.

[Vanessa A]

It depends.  If one of you are performing services in Missouri, then yes, you will need to file a form MO-1065.  You will all then need to file MO personal returns as you have MO source income. The two of you that live in AZ will need to file non resident returns. 

If the MO member does not provide services in MO, then you will not do anything for the LLC in MO, only the member that lives in that state will need to report their share of the income from the schedule K for the state as a resident.  Since the other two partners are not residents of the state, if their is no income earned in that state, they will not need to file. 

[rYanOWCM]

Thank you, yes, the services are all being performed out of Arizona and we are an Arizona based LLC.  The partner in Missouri does not perform any services for customers other than programming the features of our web application which are used in Arizona to perform the services.  Looks like we are ok to skip Missouri then?

[Vanessa A]

Yes, if no income is generated from MO sources, then you can skip Missouri. 

[rYanOWCM]

Thank you Vanessa!!!