Investor · Commack, NY · Member since 2014 · 23 posts · 10 votes
Hi,
I had a quick question about filing state taxes and registering for a Foreign Corporation License (if this is even needed).
I live in NY and registered my LLC as a Sole Proprietorship here in NY however all my rental properties were bought, owned and income derived from Ohio. 2019 was when my LLC was incorporated and rentals purchased so this will be my first year filing.
1. Do I need to file a Foreign Corporation form in Ohio?
2. When filing my taxes this year, will I need to submit both a New York State and Ohio State return or just one and if so which one?
Accountant · Fort Lauderdale, FL · Member since 2013 · 1k+ posts · 753 votes
6y
@Steven Zai
You will have to file an Ohio nonresident return for any income the rentals generated as that is sourced to Ohio. Certainly you have to file a NY resident return since you life in NY.
I will let an attorney answer your other question.
Investor · brentwood, CA · Member since 2016 · 1k+ posts · 730 votes
6y
I'm resident in CA and have rental properties in OH. I don't use LLCs, but I do file in both states. My overall state tax liability is unaffected because whatever I pay to OH reduces dollar for dollar my CA tax. By filing in OH I don't leave open any old tax years and of course I must file in CA.
Accountant · Fort Lauderdale, FL · Member since 2013 · 1k+ posts · 753 votes
6y
@Steven Zai
You will have to file an Ohio nonresident return for any income the rentals generated as that is sourced to Ohio. Certainly you have to file a NY resident return since you life in NY.
I will let an attorney answer your other question.
Investor · Commack, NY · Member since 2014 · 23 posts · 10 votes
6y
@Christopher Smith That makes sense. I assumed you needed to file in both the resident state, plus the investing state but I wanted to be 100% sure. Where in Ohio do you invest and do you use a property management company and/or turnkey rental company?
@Sean Morrison Do you have a good link/source/document to do this and can I backdate this to 2019 since I haven't filled one out yet or should I just do it from 2020 onwards?
Attorney · Slidell, LA · Member since 2016 · 322 posts · 179 votes
6y
Go to the Ohio Secretary of State's website. Somewhere on there will be the form to file as a foreign entity. It can't be backdated, because their date will reflect when it's filed with them.
@Christopher Smith That makes sense. I assumed you needed to file in both the resident state, plus the investing state but I wanted to be 100% sure. Where in Ohio do you invest and do you use a property management company and/or turnkey rental company?
@Sean Morrison Do you have a good link/source/document to do this and can I backdate this to 2019 since I haven't filled one out yet or should I just do it from 2020 onwards