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Protips44
New Member

I have an out of state SMLLC (Colorado) and file personal taxed in California. Do I need to file anything for CO at tax time and do I need to register with CA?

I opened a Single Member LLC (taxed as a disregarded entity) in Colorado (using my parents address) but I live and work a separate full time job in California. My LLC mainly just collects royalty checks from digital sales on an online store.

  1. Do I need to file anything with Colorado? I assume no since the SMLLC income is just treated as pass-through and I just report it as part of my personal CA income.
  2. I assume I don't need to register this SMLLC with California and pay the annual franchise tax that is normally required of CA based SMLLCs?
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1 Reply
DanielV01
Expert Alumni

I have an out of state SMLLC (Colorado) and file personal taxed in California. Do I need to file anything for CO at tax time and do I need to register with CA?

It depends.  Quite honestly, it is likely you have something to report, either to Colorado, California, or both.  The following information should help guide you:

1.  Do you need to file anything with Colorado?  Although you are correct that none of your income is reported to Coloarado, your LLC is registered in Colorado.  All states have periodic requirements for LLC registrations.  Please note the following excerpt from this website (Click on link for more information):  Business FAQs - Colorado Secretary of State:

Periodic reports

Q1. What is a Periodic Report? Why do I have to file one? A1. Reporting entities, such as limited liability companies, corporations, nonprofit corporations, and foreign entities, are required by law to submit a Periodic Report each year to the Secretary of State. Refer to the glossary for a full list of reporting entities.

Submitting a Periodic Report allows an entity to update the current name and address of its registered agent and its principal office address, which helps ensure current information is available to the public. Submitting the Periodic Report also maintains the “Good Standing” of the entity with the Secretary of State. For more information, refer to Noncompliance and Delinquency FAQ or see section 7-90-501, C.R.S.

Online filing is a minimal cost but is a requirement to keep your Colorado LLC in good standing.


2.  Do you need to file anything in California?  It really depends.  Please note the following link (click for more information):  Do I have to qualify or register a foreign (out–of–state or out–of–country) business entity?

When you read the information, the website itself suggests legal counsel to determine if you need to register or qualify your out-of-state LLC in California.  You may wish to do precisely that to ensure you are fulfilling CA legal and registration requirements.

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