Q1. If I work as an independent contractor in a different state, where I only stay temporarily to render my service, do I still pay state tax on the earned income on 1099?
A.1. Yes. As explained above, you are required to file a state return and pay state tax to any state that you physically work in. The fact that your hoe state (TX) does not have an income tax does not get you out of paying state tax.
Q. 2. Can I still use my domestic PLLC for this purpose? Professionals living in one state may often travel to different states for job. What kind of PLLC are they required to form?
A2. This is a tax forum, not a legal forum. For tax purposes, an LLC is a disregarded entity. You file as a self employed person on your federal (Schedule C) and state returns.
