state return schedule k1

[bong019520021]

Hi, I have a new LLC ithat does pure online mobile app services with zero revenue last year . The llc is set up in delware , but i'm living in virginia. I'm doing a schedule k1 now, but i'm bit confused if i should still file a state return? because no businesses were conducted in the state i'm living or other states beuause operation hsn't begin yet plus it's pure online.  thank you

[MinhT1]

If for your LLC, operations have not yet started in 2021 and your LLC has no income or expenses then you do not file to file a Federal tax return (form 1065). So there is no form 1065 or Schedule K-1 to file.

You are not required to file a Delaware tax return either.

But Delaware imposes a flat $300 tax on LLCs which must be paid by June 1.

[bong019520021]

thank you well i have revenue but there are expenses, so i'm fuling a schedule k1. so even i start having revenues but i live in virginia, i still don't have to file state return since the llc is established in delaware, is that correct?

[JillS56]

No, that is not correct.   If your business is a single-member LLC then your business for tax purposes is considered a disregarded entity as the taxes are paid through your personal return.   Because you live in Virginia and I assume you conduct your business in Virginia the income from the business is reported on your Virginia return.  

If you are a multi-member LLC, then the business is considered a partnership.   A Partnership informational return Form 1065 is prepared and the partners will receive a Schedule K-1.    Each partner then reports their share of the profits/losses on their individual Form 1040.   Thus requiring the reporting of the income on your Virginia State Return.

Simply because you have formed and registered your business in Delaware does not mean it eliminates you from filing a state tax return.   

[CryCar2003]

My first question is if you have filed a business return for this before?  If not, a K1 is not always needed.  You can do a Schedule C for the business if it is simple expenses and income, and your LLC is one owner.

[bong019520021]

@Ji so i'm a multi member llc,  i don't have revenue but have some expenses , i will still have to report sate return?

[Mike9241]

does your LLC have members other than yourself? only multimember LLC's file form 1065 or S-corp if that's elected. single-member LLC items are reported directly on Schedule C.

[bechicago90]

I'm new to K1 reporting.  I live in IL and will receive a K1 from a firm in OH.  Both the firm and the real estate project are based in Ohio.  Will I only need to file my tax return in IL and Federal?  Or might I now need to also file a return in OH due to the K1?    thx.