How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Tax.appeal.168 Your Own Question
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 3443
Experience:  3+ decades of varied tax industry exp. Tax Biz owner
Type Your Tax Question Here...
Tax.appeal.168 is online now
A new question is answered every 9 seconds

If you have an LLC in Phoenix and live in California would

This answer was rated:

If you have an LLC in Phoenix and live in California would you pay taxes in both states?
Hello, THANK YOU for choosing Just Answer. My goal is to help make your life...a little...LESS taxing.

Happy Holidays!!

In brief, the state of California taxes the residents on their worldwide income. Sole proprietorships, partnerships, LLCs and S corporations are pass-through entities for federal income tax purposes. And as an LLC is a Pass through entity, this means that this type of entity is not subject to income tax. Rather, the owner(s) are directly taxed individually on the income, taking into account their share of the profits and losses, which is shown on their Form 1040. There is NO double taxation. As you are a resident of California, you will complete two state tax returns, one for AZ, and the other for California. On the California return you will list yourself as a resident, and on the Phoenix return, you will list yourself as a non-resident. Taxes applied by the state of AZ will be credited by the state of California.
Tax.appeal.168 and other Tax Specialists are ready to help you

Related Tax Questions