Quote:
Originally Posted by HardDrive
Does she still have to pay taxes on the money that was made, even though she has not paid herself any wages?
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You are asking if she will owe Ohio taxes?
Even though the LLC is located in Washington which 1)-doesn't have income tax and 2)-no distributions/self-payments were made?
It looks like a single-member LLC is a “disregarded entity”. Pass though taxation same as owner.
Obviously Federal tax is going to be the same anywhere.
(Not sure what the threshold income penalties are for not making quarterly estimated payments.)
https://www.irs.gov/businesses/small-businesses-self-employed/limited-liability-company-llc
And an LLC with only one member is treated as an entity disregarded as separate from its owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes), unless it files Form 8832 and affirmatively elects to be treated as a corporation.
It looks like most states treat LLCs acording to the owner's location as well.
How LLC Members Are Taxed | Nolo.com
State Taxes and Fees
Most states tax LLC profits the same way the IRS does: The LLC owners pay taxes to the state on their personal returns, while the LLC itself does not pay a state tax.
There is a blip here about having to 'qualify to do business in a state'.
(Not sure what that means.)
Conducting Business as a Corporation or an LLC Out of State - FindLaw