I have a rental property in Alabama, which is owned/operated under an LLC I created in Alabama for the purposes of that rental property. That Alabama LLC has a single member, which is another LLC located in Georgia. I reside in Georgia and have an LLC in Georgia for holding other LLCs and assets. Alabama only requires a business privilege tax on pass-through entities such as LLCs, so the LLC is not obligated to pay income taxes, however the income I make from that Alabama LLC passes through to my GA LLC then to my personal income. I am the only member of the GA LLC.
My question is: am I personally required to pay Alabama income tax in addition to personal income tax in GA for the income generated by the rental property in Alabama? I know I need to pay a federal income tax on the income generated by the LLCs, but to which state(s) do I pay a personal income tax (since I live in GA but the LLC that generates income is in AL)?
