Tax Q: How to file when parent holding LLC is in different state

[Elaine Chen]

Hi, newbie here! My partners and I formed a parent company in WY and a subsidiary llc in Ohio to purchase a real estate investment property (where we purchased property in 2021). All we had in 2020 tax yr was fees to set up the Lcc's and we are hoping to file taxes ourselves to save $. Could you share how you deal with taxes in this situation? Unsure if we need separate filings for each LLC in each respective state, or if we could consolidate the filing to only file for the Holding company LLC in Wyoming? Would be much obliged if you could help point us in the right direction! Thanks

[Basit Siddiqi]

@Elaine Chen

Multi-member LLC's are normally required to file a partnership return.
Single-member LLC(if not elected to be taxed as a corporation) are disregarded for tax purposes and not required to file a separate tax return.

Regarding Wyoming, if you have no property, payroll or sales within the state, you may not have any nexus to the state and as a result no tax filing obligation with the state.

Ohio will require a partnership return. Furthermore, Ohio is a unique state where there are many locality returns.

Doing the return yourself can save you money...if you know what you are doing.
When you have partnerships, you are not just dealing with your tax situation, but others as well(your parents).