Your post is a little confusing as you bring in MD and VA; not sure why?
Having said that, based on the limited initial facts:
- Your LLC that is registered (and I assume organized) in WY owns a disregarded LLC.
- As a result of that structure, you only have one LLC. The disregarded LLC is essentially treated as a division for federal income tax purposes.
- While you indicate that this is a "partnership holding LLC", you don't indicate if this is a multi-member LLC. Based on this, I am assuming that this is a multi-member LLC; as you also indicate that you are filing a form 1065.
- AR follows federal for purposes of filing an AR LLC tax returns. As a result, the WY LLC will need to file an AR 1050 along with the applicable state K-1. This is due to the fact that the WY LLC is doing business in AR as a result of the rental activity.
- When filing the LLC state returns, you will need to make sure you allocate the income / loss to the appropriate state; for both WY and AR. This will impact the filing requirements for each member (once again, assuming this is a multi-member LLC).
- I would also recommend you check with the AR secretary of state office as the LLC may have to file a franchise tax return as well.
- Finally, if you have not done so already, I would recommend discussing with legal counsel as to the need to register to do business in AR.
- Second Finally, I would recommend you consult with a tax professional before you venture too far down the road. Partnership tax gets complicated quickly, and having multiple state filing requirements adds to the complexity.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
