taxation of single member LLC

[Veritas Harmer]

I know this may be a simple question but I am having trouble finding the answer. 1st, In regards to a single member LLC taxed as a pass through, which state do you pay taxes? I live in Illinois but the property that would make money rental income would be in Missouri.

I have not yet set up my LLC, I was planning on making it in Missouri as it seems to cost less no annual fees. I still haven't decided on whether to make it a domestic or foreign LLC in Missouri. I was thinking about starting a foreign LLC in Missouri so that I could purchase real estate outside of the state in the future if I so choose.

Appreciate the help!

[Aaron K.]

Both, it starts in the state where it is earned then the state where you live but you get a credit for what you paid in the first state so if MO tax is 5% and IL is 10% and you made $100 you would pay $5 to MO and you would owe $10 to IL but get a credit for the $5 paid to MO so you would owe the difference of $5 to IL.