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KJLLAW, Attorney
Category: Business Law
Satisfied Customers: 1452
Experience:  Attorney at Law Office of KJLLAW
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I registered a single member LLC in PA in 2012, and a

Customer Question

I registered a single member LLC in PA in 2012, and a Foreign LLC in NJ at the same time. I was always a resident of NJ and conducted business in NJ. I filed all my taxes in NJ. I recieved a notice from PA that I never filed my taxes in PA. My Accountant said since I am a single member LLC and resident in NJ i don't have too. He said I should let my PA LLC lapse, and file for a new LLC in NJ. Does this sound right?
Submitted: 1 year ago.
Category: Business Law
Customer: replied 1 year ago.
I should be more specific, the notice stated 2012, 2013, and 2014 is what they are looking for. When I called the dept of revenue in PA he said the RCT-101 needs to be filed for each year. My accountant said just ignore it and register a new LLC in NJ only.
Customer: replied 1 year ago.
If that's true should i figure out how to dissolve the business in PA?
Expert:  KJLLAW replied 1 year ago.

Hello and welcome to Just Answer. No attorney-client relationship or privilege is formed by speaking to an expert on this site, the answers are for general information. By continuing, you confirm that you understand and agree to these terms.

Pennsylvania has tax-related requirements that you must fulfill before you can dissolve your LLC. Your accountant is correct it would be wise to close the PA LLC, but legally you cannot ignore the filing requirements, and their requests, and you cannot dissolve until you have paid all required state taxes or showed them that you do not owe any state taxes, and then received clearance from the Department of Revenue ("DOR") and the Department of Labor and Industry ("DLI").

To obtain the necessary tax clearance certificates, you must file DOR Form REV-181 (Application for Tax Clearance Certificate) with the DOR and DLI. You should complete, but not sign, the form, make one copy, sign each copy separately, and then mail one signed copy to each of the two agencies.

I hope this helps with your question.

Customer: replied 1 year ago.
We did not do any actually business in PA, all business was conducted in NJ. Therefor, I shouldn't have to own any taxes. How can I show them that?
Expert:  KJLLAW replied 1 year ago.

Even if your LLC is not subject to Pennsylvania corporate taxes you still must file the Application for Tax Clearance Certificate (REV-181) and report that you have made no income in Pennsylvania. You will do this through your tax return and schedules, and show what source of revenue the LLC had during the past year. Your accountant would have to file this form for you and submit the proof along with the form.