Possible to avoid state income tax on trading account by using out of state LLC?

Discussion in 'Options' started by thetafarmer, Oct 4, 2014.

  1. Is it possible to completely avoid paying your home state income tax by registering an LLC in a state like Nevada that doesn't have a state income tax?
     
  2. It may be different state by state but for the state of Pennsylvania LLC income is pass-through income regardless where the LLC is registered and any income you receive from the LLC must appear as personal income on your state income tax forms.

    :)
     
  3. 1245

    1245

    LLCs functions more like a sole prop business or partnership. All the income filters down to the partners though a K1. The entity is not taxed. You pay based on where you live.

    1245