We are about to form a LLC but have some questions regarding State taxation. Here is the background:
Three members will form the LLC
The members reside in different states - 1 in Florida, 1 in New Jersey and 1 in California
The LLC will be formed in Florida which has a 5.5% tax on businesses
The members will be providing consulting services from their respective locations in FL, NJ and CA
The consulting services will be provided to clients in many different states
The questions are:
If the NJ member provides service from NJ to a client in Massachusetts (for example), would we have to obtain 'foreign qualification' for both New Jersey and Massachusetts?
Assuming all 3 states in this example levied income tax, would we have to pay taxes in all 3 states? If not all 3, which ones and why?
Would we have to pay the 5.5% FL tax even though the income was derived from services provided in NJ for a client in NY?
Any advice would be appreciated.
What is the name of your state (only U.S. law)? California
Three members will form the LLC
The members reside in different states - 1 in Florida, 1 in New Jersey and 1 in California
The LLC will be formed in Florida which has a 5.5% tax on businesses
The members will be providing consulting services from their respective locations in FL, NJ and CA
The consulting services will be provided to clients in many different states
The questions are:
If the NJ member provides service from NJ to a client in Massachusetts (for example), would we have to obtain 'foreign qualification' for both New Jersey and Massachusetts?
Assuming all 3 states in this example levied income tax, would we have to pay taxes in all 3 states? If not all 3, which ones and why?
Would we have to pay the 5.5% FL tax even though the income was derived from services provided in NJ for a client in NY?
Any advice would be appreciated.
What is the name of your state (only U.S. law)? California