topic Re: K-1 creation for multiple states in State tax filing

K-1 creation for multiple states

oferc141 — Wed, 13 Mar 2024 05:11:16 GMT

I have a MD LLC and created a federal K-1 and also a MD K-1. The LLC has members in MD, PA and CA. I filed the Maryland Pass-through entity income tax return. Do I need to file PA and CA pass-through entity income tax returns as well to create K-1s for PA and CA?

Re: K-1 creation for multiple states

PatriciaV — Tue, 19 Mar 2024 14:02:53 GMT

If the LLC does not have income sourced in states other than Maryland, you would not create an LLC tax return in another state. The Pass Thru Entity Tax is a benefit to the members for tax owed in Maryland only. The members are responsible for any taxes in their home states.

Re: K-1 creation for multiple states

oferc141 — Tue, 19 Mar 2024 17:46:39 GMT

Patricia, thanks for the response.

I ended up asking multiple CPAs and the consensus agrees with your response.

The MD LLC with only MD income generates a federal and MD K-1. No generation of other state K-1s is required even though members of the LLC reside in states outside of MD.