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Level 3
April 4, 2021
Question

LLC Taxation

  • April 4, 2021
  • 1 reply
  • 4 views

If a client lives in Massachusetts, but sets up an LLC in Illinois because that's where the rental property the LLC contains resides, then should the client have to pay Illinois tax on that LLC income + Massachusetts tax also?  How do we ensure the client avoids double taxation in that regard?  Because the income from that LLC was all earned in Illinois under an LLC setup in Illinois.

 

 

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1 reply

sjrcpa
Level 15
April 4, 2021

Massachusetts will give a credit for tax paid to Illinois.

The more I know the more I don’t know.