North Carolina taxes income from all sources. This means you need to report the LLC income under the North Carolina state taxes section of your individual Form 1040 return. In most cases, TurboTax will transfer the information from Schedule K-1 to the state module.
Note that the Wyoming LLC would not file state income taxes for North Carolina. Wyoming does not tax income at either the corporate or personal level for the company’s members. However, LLCs must file annual reports with the Secretary of State, with fees based on Wyoming asset values.
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