Business taxes for an out-of-state LLC ?

I am a New Hampshire resident looking to form a company for the purpose of investing in real estate, primarily via the Internet, as I am legally blind and travel is difficult. I have decided on an LLC for the legal and financial protection it affords me, but I am unsure of the tax consequences. As a pass-through entity with onlu one member, income taxes seem straightforward at the federal level, but I seem to be getting conflicting information about state business taxes. NH has both a business enterprise tax and a business profits tax. Do these aply to an LLC such as mine? It would seem that they would apply only if I elected taxation as a corporation, but it isn' defined that clearly. Also, I read somewhere that incorporating in the state of Wyoming would allow me to avoid the NH business taxes, since WY has none, and a single member LLC is not considered to have an 'wmployee', so would only have to file federal income taxes + Schedules C & SE. Lastly, and I know it's more of a legal question, would I have to register the LLC in all states I wished to do business, even if I never take physical ownership of any property in those states? Thanks in advance for any advice or pointers.

Paul

> > > > > > > > >

All business organizations, including corporations, partnerships, LLC (single or multiple member), and sole proprietorships are subject to the New Hampshire BPT and the BET. However, the tax applies only to income from NH activity.

No, incorporation in Wyoming (or Nevada, etc.) would not save you any state business taxes. State income and franchise taxes are imposed by the states where the entity does business, not necessarily where it is organized. If it does business in NH, it will be subject to the BPT and BET. You should also be aware that you, as the single owner of this LLC, will be subject to individual income taxes in most states where the LLC owns property or does business. In general, you will report and pay tax on the LLC's income from sources (property, in your case) in each state on a nonresident individual income tax return. This will be true in all states except for those that do not impose comprehensive individual income taxes (Nevada, Wyoming, South Dakota, Washington, Florida, Texas, Alaska, Tennessee, and, of course, New Hampshire). Some states (e.g., Texas) will tax the LLC as if it were a corporation. Some other states will impose an entity-level tax or fee on the LLC itself in addition to individual income tax on you as the owner (e.g, California).

No, you would not have to register the LLC in any state until it acquires property or otherwise does business in that state. Then it would have to be registered. Katie in San Diego