I have a Wyoming LLC set up for my mineral royalty interests that I have in OK. My LLC is a Sole Member LLC and my accountant needs to know if OK requires me to file a tax return on this WY LLC in OK? In the past these interests were in my name and I always filed a non-resident income tax return. I'm basically a tax dummy and my accountant needs to know this information as she is not familiar with OK taxes involving out of state LLC's. Any information would be appreciated and thank you.
Laurie
Forgive me for answering a question with a question but i asked an attorney whether a LLC was advantageous to saving taxes. He said it was worse because i'd have to pay a corporate tax and then income tax on whatever i withdrew - basically being taxed twice. I know some on here say one should get a LLC if they have substantial acreage so i'd appreciate your reasons why since you found it necessary to get one Laurie (and anyone else is welcome to chime in).
OK does not recognize "foreign wills" (wills made in other states). I was advised by an attorney in OK to place my mineral interests in an LLC so that upon my death those interests would not be subject to OK probate.
You might want to address your questions to the OK tax commission. See contact info below
The Oklahoma Tax Commission can be reached at (405) 521-3160.
The in-state toll free number is (800) 522-8165.
the advantage of a LLC is that is provides the 'corporate veil' of legal protection for its principal(s) without double taxation of the "C" corporation
"A limited liability company is not a taxing entity, and it is not recognized by the Internal Revenue Service for tax purposes. So how does an LLC pay income tax? The IRS says that an LLC may be taxed as a partnership or a corporation (for a multiple-member LLC), or be disregarded as an entity separate from its owner (for a single-member LLC)."
John Ross said:
Forgive me for answering a question with a question but i asked an attorney whether a LLC was advantageous to saving taxes. He said it was worse because i'd have to pay a corporate tax and then income tax on whatever i withdrew - basically being taxed twice. I know some on here say one should get a LLC if they have substantial acreage so i'd appreciate your reasons why since you found it necessary to get one Laurie (and anyone else is welcome to chime in).
I have found out that a single member LLC does not need to file an OK return. The out of state LLC's income will be reported on personal 1040 - Schedule C return and the individual files an OK individual return for the OK oil & gas revenue.