My LLC is from Utah, I do all business in Colorado, which state do I file my business return with?

[costurbousr]

I am using TurboTax Business to create a K-1 for my LLC which I created in Utah. I live in Colorado and do all of my business in Colorado. Besides filing a business return with the Feds, which state do I file a business return with - Utah and/or Colorado?

Side question - why do I need to file any business return with the Feds and State since I file the K-1 with my personal taxes?

[Rick19744]

What is not clear from your facts is whether or not you are a multi-member LLC ("create a K-1 for my LLC).  Please supply the following additional facts: Are you a multi-member LLC?  If "yes" where do the other member's reside? If "no" then no form 1065 or K-1 is required as you are a single member LLC which is disregarded for federal income tax purposes.  All income and deductions would be reported directly on your form 1040 schedule C

[Critter]

Side answer ... to get the K-1 you have to file a business return showing the generation of the K-1.

[costurbousr]

My LLC is a multi-member. My wife and I are the members.

[costurbousr]

We both live in Colorado

[costurbousr]

Rick19744 - Thank-you for responding, it was very helpful. However, I now have some mechanical questions regarding the use of the TurboTax Business 2016 product of which this is the first time I am using this product and in fact filing a LLC return.

When I enter my business information it only allows be to select one State primarily ding business in. If I select Utah will it the State Return I purchase complete the TC-65 and TC 20 forms for me? If I select Colorado will that State Return do the CO Form 106 for me?

Or, would I be better off simply specifying CO as my primary since that is where I am doing my business and just file both Colorado and Utah forms manually?

[ScruffyCurmudgeon]

Be aware that the Business product does not come with a free state program or filing.  Each state must be purchased and only can be purchased online from within the running Business program.

[Rick19744]

TT should be able to handle both state tax returns and all applicable forms.  I can't tell you whether you are better off preparing manually; some individuals are comfortable following the TT prompts and figuring out the forms by reading the state form instructions as they are preparing the returns and others just struggle.

Based on what you have stated, the Utah return should be pretty straight forward since the most important schedule for you would be the TC 20 Schedule J with everything reflected in column B.

In looking at both state tax forms, if you are only going to prepare one state return using TT, I would probably recommend preparing the Colorado return with the software.

[Rick19744 · Accepted solution]

Below are my responses and some guidance links:

• Since the LLC was organized in Utah, you will be required to file a Utah TC-65 along with TC 20 Schedule J.  The later is the apportionment schedule.
• Link for instructions http://www.tax.utah.gov/forms/current/tc-65inst.pdf
• In general, nonresident members of a Utah LLC are required to having a 5% withholding and this is remitted by the LLC.  However, this is only a requirement on all Utah business and nonbusiness income derived from or connected with Utah sources and attributable to pass-through entity taxpayers.   Since you indicate you have no Utah sourced income, then this should not be applicable.  Your schedule J noted above should support this position.
• You will also be required to file an annual report.  See this link https://secure.utah.gov/abr/abr
• You will also be required to file a Colorado form 106  https://www.colorado.gov/pacific/sites/default/files/106Book.pdf
• You will then use the information on the Schedule K-1 to complete your form 1040 Schedule E.
• Your Colorado income tax return will begin with your federal return information.