We are starting an LLC in Delaware, but will be operating solely in Maryland. It will be taxed as an S Corp. We, the shareholders, reside in MD. Where do we pay tax on our profit from the business? Obviously, we know the business doesn't pay any tax itself because it's a passthrough entity, but, personally, do we pay tax on the profits in DE because its incorporated there, or are we paying MD tax because we live in MD?
Thanks!
Thanks!