LLC AS DISREGARDED ENTITIY

johnslic — Sat, 01 Mar 2025 21:42:55 GMT

My wife and I have an LLC which I understand can be considered a disregarded entity. In the Business software I chose US Limited Liability Partnership. My business is in PA and I reside in NC. I completed the 1065 and PA S Corporation/Partnership Return , and the result was that I owed a PA tax - about 1.5% of profits. As a disregarded entity I understood I would file a PA Non Resident Individual Tax return - one for me and one for my wife but there would not be a tax for the PA S Corporation/Partnership filing. ie like the federal, taxes would be paid on our individual return. Should I have chosen US General Partnership in order to be considered a disregarded entity ?

Re: LLC AS DISREGARDED ENTITIY

PatriciaV — Sun, 02 Mar 2025 19:18:45 GMT

A Limited Liability Partnership is not the same as an LLC (Limited Liability Corporation). However, that in itself shouldn't have caused state taxes to be assessed on the LLC.

Did you indicate that the partnership would pay the state income taxes on behalf of the partners? If so, that would create a tax liability for the LLC. Otherwise, the income should flow to the partners individual tax returns (via Schedule K-1).

You might go back through the PA interview for the business return in case you need to change your settings for how tax on income is paid.

topic LLC AS DISREGARDED ENTITIY in Business & farm

LLC AS DISREGARDED ENTITIY

Re: LLC AS DISREGARDED ENTITIY