LLC Taxes

[Tax-Happens]

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)?

[Anonymous_]

---

@Tax-Happens wrote:

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....

---

I am not sure how you can avoid filing an Alabama return (if the threshold requirements are met) since you have Alabama source income from the rental in Alabama. 

See https://revenue.alabama.gov/wp-content/uploads/2017/05/810-3-2-.01.pdf

Nonresident individuals receiving taxable income from property owned or business transacted (including wages for personal services) within Alabama are taxable on such income from within Alabama. They should file Nonresident Individual Income Tax Returns, Form 40NR, each year. See Regs. 810-3-14-.05 (relating to taxable income of nonresidents) and 810-3-15-.21 (relating to allowable deductions of nonresidents).

[Tax-Happens]

Perfect resource, thanks so much for clearing this up for me!