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Brookelyn
New Member

I'm a partner in a LLC that's legally formed address is in KS. However, our brick-n-mortar office is in MO and is where I work. Which state(s) do I file? I live in MO.

The KS address is the home address of one of our owners and is the address we used on all the forming of the business documentation.  However, our office is in Missouri and that's where I drive to and work from everyday. I am also a resident of Missouri. Did I make money in Missouri or Kansas (because our LLC is a Kansas business)?  Do I need to file both state returns?  Which one do I report as the state that I made money in; KS or MO?  TurboTax automatically makes me file a state return for MO because it's my resident state.  My K1 has the Kansas address on it only.  Please help!
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DanielV01
Employee Tax Expert

I'm a partner in a LLC that's legally formed address is in KS. However, our brick-n-mortar office is in MO and is where I work. Which state(s) do I file? I live in MO.

For your personal taxes, you only file Missouri.  Kansas did repeal it's pass-through entity exemption, but it still doesn't affect you as a nonresident.  From a very respected organization comes this excerpt:  

Kansas nonresident Withholding Requirements
In 2014, S.B. 265 had removed the requirement that subchapter S corporations, partnerships, and limited liability companies withhold Kansas income tax on nonresident shareholders’, partners’, and members’ share of Kansas source income. This repeal of withholding requirements was primarily due to the exemption of pass-through income from state income taxation that was enacted in 2012; however, despite this exemption’s repeal under S.B. 30, Kansas has yet to enact any new legislation to reinstate the withholding requirement. As such, currently there is no requirement that pass-through entities in Kansas withhold tax on the income of nonresidents. (Italics added)

While the partnership return may have had requirements in both MO and KS, on your personal return your income is not Kansas sourced, because you have earned it entirely in Missouri under current Kansas law.

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DanielV01
Employee Tax Expert

I'm a partner in a LLC that's legally formed address is in KS. However, our brick-n-mortar office is in MO and is where I work. Which state(s) do I file? I live in MO.

For your personal taxes, you only file Missouri.  Kansas did repeal it's pass-through entity exemption, but it still doesn't affect you as a nonresident.  From a very respected organization comes this excerpt:  

Kansas nonresident Withholding Requirements
In 2014, S.B. 265 had removed the requirement that subchapter S corporations, partnerships, and limited liability companies withhold Kansas income tax on nonresident shareholders’, partners’, and members’ share of Kansas source income. This repeal of withholding requirements was primarily due to the exemption of pass-through income from state income taxation that was enacted in 2012; however, despite this exemption’s repeal under S.B. 30, Kansas has yet to enact any new legislation to reinstate the withholding requirement. As such, currently there is no requirement that pass-through entities in Kansas withhold tax on the income of nonresidents. (Italics added)

While the partnership return may have had requirements in both MO and KS, on your personal return your income is not Kansas sourced, because you have earned it entirely in Missouri under current Kansas law.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

Brookelyn
New Member

I'm a partner in a LLC that's legally formed address is in KS. However, our brick-n-mortar office is in MO and is where I work. Which state(s) do I file? I live in MO.

Thank you very, very much.
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