Rental Property LLC State Taxes Ohio

Member since 2021 · 4 posts · 3 votes

A fairly specific question. I have a multi-member LLC in Ohio that my parteners and I use to own single family rentals. I am working on filing federal buisness taxes for the LLC in order to generate K1s, etc. But the system just asked me if I also need to file Ohio state taxes for the buisness and I am at a loss!

Any help appreciated!

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Angel Maldonado

Accountant · Dallas, TX · Member since 2020 · 22 posts · 3 votes

Hi Jonah, generally Ohio levies a business income tax for LLCs based on gross receipts. If your LLC is below the no tax due threshold, you are likely still required to file a zero balance due return to keep your LLC in good standing. Furthermore, Ohio is a state that permits local/municipal tax authorities to levy their own taxes, so depending on the locality where you do business and where the LLC members reside, you may also be required to file local tax returns for each jurisdiction. Ohio is a state that allows the pass-through entity tax election on the state return, this may be beneficial to the LLC members so that is something you would want to look into.

Keep in mind that this is just general information and not tax advice, there are not enough details to give you specific steps for your situation so make sure to consult a tax professional if you are unsure of your tax requirements.

Best,

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Angel Maldonado
Accountant · Dallas, TX · Member since 2020 · 22 posts · 3 votes
2y
Hi Jonah, generally Ohio levies a business income tax for LLCs based on gross receipts. If your LLC is below the no tax due threshold, you are likely still required to file a zero balance due return to keep your LLC in good standing. Furthermore, Ohio is a state that permits local/municipal tax authorities to levy their own taxes, so depending on the locality where you do business and where the LLC members reside, you may also be required to file local tax returns for each jurisdiction. Ohio is a state that allows the pass-through entity tax election on the state return, this may be beneficial to the LLC members so that is something you would want to look into.
Keep in mind that this is just general information and not tax advice, there are not enough details to give you specific steps for your situation so make sure to consult a tax professional if you are unsure of your tax requirements.
Best,
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Jake BakerBusiness Member
Flipper/Rehabber · San Diego, CA · Member since 2020 · 1k+ posts · 695 votes
2y
Are you filing the taxes yourself? Best to consult with a CPA on this one.
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Sean O'KeefePro Member
CPA | Accepting new clients | 50 States · Member since 2022 · 1k+ posts · 870 votes
2y
Quote from @Jonah S.:

A fairly specific question. I have a multi-member LLC in Ohio that my parteners and I use to own single family rentals. I am working on filing federal buisness taxes for the LLC in order to generate K1s, etc. But the system just asked me if I also need to file Ohio state taxes for the buisness and I am at a loss!

Any help appreciated!
@Jonah Stavsky Yes, multi-member LLCs are required to file an LLC return in Ohio. If the LLC members are married then different requirements need to be explored.
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Nate MeekerBusiness Member
Real Estate CPA | California · Member since 2020 · 543 posts · 251 votes
2y
@Jonah S. Always file state taxes even if there is a loss. Some states will disallow certain losses in future years towards a sale if you never filed that return in the past. Be sure to allocate debt basis accordingly as well for all partners. Ohio is not a community property state.
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