Operating Food Truck out of the state of my residence

[markornet]

Hello Everyone!

I'm a resident of Maryland and work in Washington DC where I get my W2. I also own a food truck in Virginia under my single-member LLC. I understand I have to pay taxes from my W2 in my place of residency (MD) but where do I have to pay State tax from my VA single-member LLC (food truck) operation? All business has been conducted in the State of Virginia. I did pay the sales taxes each month in VA but what about income tax from the food truck operation? It is going to be a loss (because 2024 was the first year of business and the cost of the food truck was a bit high)

Lastly, will I be able to make the tax return with TurboTax Home & Business?

[BillM223]

The general rule is that you owe tax to the state where you live and the state(s) where you work, so the answer is, yes, you will need to report income and expenses on a Virginia non-resident tax return. 

MD and DC have reciprocity on wage income, so you don't file a DC return, but since that applies only to wage income, you will have to file a Virginia non-resident return.

Yes, you will be able to do your tax return with Home & Business.

Good luck with the food truck!