Reporting 1099k in state not registered

[SmallBusinessSurvivor]

Hello! A newbie and looking for some guidance here. 

I have a LLC with a EIN registered in GA. Moved to MA last year and updated my address on PayPal. PayPal sent the 1099K with the EIN to MA instead of GA. The issue is that the LLC / EIN isn’t registered in MA and I plan to here only for a year or so, so trying to avoid the headache of registering the LLC temporarily. 

I’m trying to understand the impact of this situation.

- Would MA have a problem receiving a 1099k for an EIN and LLC not registered in the state ?

- Is there any problem in showing the 1099K income in my MA tax returns ?

- What is the impact of not registering the LLC and EIN with the state ?

- If the above is a problem, is it safer to have PayPal issue the 1099k against my SSN in MA instead of the EIN?

thank you in advance!

[tagteam]

Is this a single-member LLC? Are you doing business in MA?

I will page @Mike9241, but if this is a single-member LLC and disregarded as a result, then MA may consider you to be an MA resident and subject to registration and state taxation.

[SmallBusinessSurvivor]

Yes, single member LLC.

- Trying to understand how to handle 2023 and

- if it’s possible to report and pay taxes in MA without having to register the LLC for just a year or two

[tagteam]

See https://www.massachusettsregisteredagent.com/llc/certificate-of-authority?gad_source=1&gclid=EAIaIQo...

Depending upon the nature of your business, you may also need a business license from the county or other municipality.

[TomD8 · Accepted solution]

Regardless of its state of registration, since you're a resident of MA any income reported on your 1099-K is taxable by MA.  The fact that your LLC is a disregarded entity means the income is reported on your personal tax return.

Income from a 1099-K is entered in the Other Common Income section of TT.  Enter your 1099-K there, go through the follow-up questions, and the program will enter the information in the proper place on your federal and state tax returns.