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New Member
posted Jun 6, 2019 3:57:00 AM

My single member LLC is filed in Delaware, but I am doing business in California. how do I file?

If I use the Business version of TT, it only applies to LLCs with multiple members. I've always used Home and Business version to file in the past.

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3 Replies
New Member
Jun 6, 2019 3:57:02 AM

Regarding your federal income taxes -

You will need to include your single member LLC on your individual tax return as a disregard entity (regardless of where the LLC is registered).

Depending on the type of business activities will determine where to report the LLC income and expenses on your individual tax return (if a business LLC - Schedule C, if a rental property LLC - Schedule E)

For more information see Single Member Limited Liability Companies

Regarding your state taxes -

If you live and operate your business in California, you will be subject to CA tax regardless if you incorporate in Delaware.  A Delaware corporation that operates in CA, must register as a foreign corporation with the State of California and pay California income and franchise tax. You will report the LLC income and expenses on your individual CA resident state income tax return (as a disregarded entity).

You may also owe franchise tax to Delaware since the LLC is registered in DE. You will be able to claim these DE state franchise taxes as part of your LLC's business licenses and taxes expense on your Schedule C (or Schedule E). However, if no DE source income is generated by this LLC, you will not have an DE nonresident state income tax filing.


New Member
Mar 10, 2021 3:07:54 PM

I have a question about LLC's filing in Delaware, but operating in another state, such as California. I need to pay my Delaware Franchise Tax, have no earnings, and a small amount of expenses. How should I do that through Turbo Tax? Much appreciation. 

Expert Alumni
Mar 11, 2021 11:21:48 AM

If you wish to claim expenses for your LLC, you will need to use TurboTax Self-Employed or TurboTax Home & Business.  Your expenses will be able to offset other income you may have.

 

Your Delaware Franchise Tax must be paid online.  

 

DELAWARE LLC ANNUAL REPORT AND PAY BUSINESS ENTITY TAX  Tax is due by June 1st.