DanielV01
Expert Alumni

Get your taxes done using TurboTax

Yes, you need two state returns for your Personal Return.  It looks like your business return only requires South Carolina unless you had business activities in PA (not the W2, that's only for your personal return).

The technicalities of your residencies are complicated.  To simplify them based on the merit of the situation, file a South Carolina resident return and a PA nonresident return.  Because of PA laws, the telecommuting job for the PA company is considered to be taxable in PA.  SC will provide you with a credit for the tax you pay to PA on that income.

Otherwise, since your LLC income is derived from SC and you were still living in SC until the relocation, the merits say that you can claim all of the income as SC resident income, and only pay PA tax on the telecommuting income.  You will need two state returns on the Personal return to do this.  But the business return will only need a SC final LLC return for the relocation.

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