We are a two member LLC formed in GA, with one member in GA and one in NC. 77% of the draws of the income was made to the NC partner and 23% of the draws of the income was made to the GA partner. I have downloaded TurboTax Business for our Federal 1065, but for state do I just generate a GA form 700 since the LLC was formed in GA? Or do I need to create something for NC in the Business download?
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The fact that one of the partners is a North Carolina resident does not in and of itself necessitate filing a North Carolina return. If you have a physical presence in North Carolina or you make money in North Carolina from the sales of merchandise or by providing services in North Carolina, then you are doing business in North Carolina and will need to file a NC tax return. You should also register as a foreign corporation in North Carolina.
DavidD66 thanks for your help. So if all of the income was sent to the LLC in GA and deposited in the LLC's bank account in GA, but later each member in their own state drew the funds, is it considered GA income, or income for each members state?
Not necessarily. You could have a bank lock box located in South Dakota and have all your income sent there, you wouldn't be doing business in SD. If the only thing going on in North Carolina is your partner is there, you don't need a NC return. If he's there working for NC clients, then you are doing business in North Carolina and need to file there.
Again, your help is greatly appreciated. So for clarity, our situation is that we each live in a different state, our clients are in states oth
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