Own LLC in NY state but live in VA

[blinn]

Hi, I'm looking for some general tax advice. Here is my situation:

1) I am 50% owner of a NY state based LLC. I will perform services for this LLC (for which I will receive Guaranteed Payments). As owner, I also will receive my share of any profits that the LLC generates. We have one office in NY state.

2) I live in VA. I will do nearly all of my work from VA (home office) and occasionally travel to customer sites across the US.

Regarding my personal state taxes, I believe this is what I should do:

1) File a non-resident state return for NY state and pay my share of NY state income tax for any income I have (Guaranteed Payments + LLC profit) from the LLC. (This information will come from my Schedule K-1 that will come from my LLC's tax return.)

2) File a resident state return for VA. All of the income from my NY state LLC will be reported, but I will also file Schedule OSC (Credit for Tax Paid to Another State) so I am not paying state taxes twice on my LLC income. (See this webpage for details: https://www.tax.virginia.gov/credit-for-taxes-paid-to-another-state)

Is that above correct? That is, should I pay LLC income tax to NY state as a non-resident (given that is where the LLC is located and that it is the sole office) and then use VA form Schedule OSC to get credit for the already paid state income tax?

Thank you in advance for any guidance and advice! 

[tagteam]

You are a member of a multi-member LLC (which defaults to a partnership). As such you should be receiving a K-1.

[blinn]

Thank you for the reply.

Yes, I understand that I will be receiving a K-1 from the partnership (based in NY state) and that this K-1 will reflect my income related to the partnership.

My question is do I then pay personal income to NY state as a non-resident (I am a resident of VA) and then use VA form Schedule OSC to get credit for the personal income tax that I pay to NY state?

[tagteam · Accepted solution]

Yes, you have NY source income.

See https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/pit/ny_source_income_sole_proprietorship.htm