Where do I have to file state taxes for my S-Corp? Posted on April 25, 2011
I am based in Ohio, and I have an online business my partner will be located in Texas. We want to minimize taxes. I know s-corp you have to pay yourself a "reasonable" salary and the rest could be a distribution (not sure on if it would be a k-1 and what line item on 1040), to avoid the SS and medicare tax, LLC you have to pay SE tax on all. Not sure what is the best strategy. The gross revenues will vary week to week from our business, and could end up being $500k+ a year. Also TX does not a state income tax but OH does, if the S-Corp is formed in TX, myself living in Ohio, would I still have to pay Ohio state income tax on the distribution?
Click to View More Answers: