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Level 2
posted Mar 12, 2024 10:11:16 PM

K-1 creation for multiple states

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?

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2 Replies
Expert Alumni
Mar 19, 2024 7:02:53 AM

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.

Level 2
Mar 19, 2024 10:46:39 AM

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.