Corporation tax for out of state LLC?
Asked by: Matt - 24 June, 2012
I live in IL. If I create an LLC in Wyoming. Would I have to pay IL corporation tax?
I live in IL. If I create an LLC in Wyoming. Would I have to pay IL corporation tax?
Answered by: Robert Kowalski - 26 June, 2012
Matt,
LLC does not pay corporate tax, unless it is elected to be taxed as C-Corporation (a rare case, statistically speaking), as it is a pass through entity.
What it means is this: whenever your LLC makes profit, this profit is distributed to you, and you pay the income tax on it (IL and federal).
Matt,LLC does not pay corporate tax, unless it is elected to be taxed as C-Corporation (a rare case, statistically speaking), as it is a pass through entity.
What it means is this: whenever your LLC makes profit, this profit is distributed to you, and you pay the income tax on it (IL and federal).
