Which State to File Partnership Return?

[TR_241]

Partnership was formed in 2021 in the state where owners resided at the time.  The owners relocated to a new state in 2022.  The business sells online products. 

Does the partnership file a return in the state where it was formed or in the state where owners reside in 2022?

[ILLMAS]

Look up source of income for online sales.

[jklcpa]

1 hour ago, T. Reynolds said:

Partnership was formed in 2021 in the state where owners resided at the time.  The owners relocated to a new state in 2022.  The business sells online products. 

Does the partnership file a return in the state where it was formed or in the state where owners reside in 2022?

You need to look up the filing requirements for BOTH the state of formation and any the state(s) in which they are operating.

In general, that will determine the partnership's filing requirements and the K-1 information to be issued to partners. Those K-1s will alert the partners of possible state filings needed for the individual returns.

[TR_241]

The business has not relocated, just the owners.  They are paying fees to the state where the business was formed.

Thank you for the help!

 

[Lion EA]

The business is still operating in State#1, right? Brick & mortar? Employees in that state?

Do partners travel to State#1 to manage the business? Or employee manager in that state?

Do partners perform business activities from their home or from any location in State#2?

[Lee B]

1 hour ago, T. Reynolds said:

The business has not relocated, just the owners.  They are paying fees to the state where the business was formed.

Thank you for the help!

 

I would file the PTS return in the state where it was originally formed and still located.

[TR_241]

2 hours ago, Lion EA said:

The business is still operating in State#1, right? Brick & mortar? Employees in that state?

Do partners travel to State#1 to manage the business? Or employee manager in that state?

Do partners perform business activities from their home or from any location in State#2?

No brick & mortar or employees in State #1.  Partners don't travel to State #1 and no manager in the state.

Partners perform business activities from their home in State #2.  

[Lee B]

3 hours ago, T. Reynolds said:

The business has not relocated, just the owners.  They are paying fees to the state where the business was formed.

Thank you for the help!

 

 

2 minutes ago, T. Reynolds said:

No brick & mortar or employees in State #1.  Partners don't travel to State #1 and no manager in the state.

Partners perform business activities from their home in State #2.  

 

[DANRVAN]

8 hours ago, T. Reynolds said:

The business sells online products. 

 

4 hours ago, T. Reynolds said:

The business has not relocated, just the owners. 

 

1 hour ago, T. Reynolds said:

No brick & mortar or employees in State #1.  Partners don't travel to State #1 and no manager in the state.

Partners perform business activities from their home in State #2.  

Sounds to me like they are now conducting all their business activity in state #2 and should re-register there.

[Catherine]

Yes they should re-register in the new state, but until they do, they may well owe a partnership return to the old state. 

[Slippery Pencil]

12 hours ago, Catherine said:

Yes they should re-register in the new state, but until they do, they may well owe a partnership return to the old state. 

If they do or not, they definitely have a filing requirement in the new state since the business is now operating in the new state.  From the sound of your OP, they operated in both states in 2022.  Thus they have to file in both.