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Hi. If you lived in Maryland on the last day of the taxable year, or you maintained a place to live in Maryland, and were physically present in Maryland for more than six months of the tax year, then you are a legal resident and have to fill out a Maryland return.
The District of Columbia, due to its unique nature as the seat of federal government and attractiveness to out-of-state workers, has reciprocity with all states, including Maryland.
Four states (Nevada, South Dakota, Washington, and Wyoming) do not have a corporate income tax. However, if you are a resident of Maryland (i.e. the residency requirements), the income from the LLC would pass through on your personal income tax return.
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For the first question, yes - if you lived in Maryland on the last day of the taxable year, or you maintained a place to live in Maryland, and were physically present in Maryland for more than six months of the tax year.
If you did not meet any of the above requirements and moved from Maryland to South Dakota, it would help. States that have no state income tax at all are Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. If you did not live in Maryland during the last day of the taxable year, you would need to have "physical presence" in that state to pay Maryland income taxes.
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