S-Corporation and multi-states

[sabkosl13]

Resident NJ opened in 2023 Corporation in PA and elected to be S-Corporation. He is only one shareholder - 100%.

He did his service as Corporation in Illinois and has income only from this state. His wife has W-2 from NJ. 

What tax returns he have to do for 2023. 

[sabkosl13]

No one can help me? Please! I will be grateful for any suggestions, opinions.

[IRonMaN]

He will definitely need to file in NJ and IL.  I'm not really sure why it is a PA corp based on your information so you would have to check PA filing requirements to see if anything is needed there.

[sabkosl13]

Income from IL was for Corp. Corp is incorporated in PA. So I looks like he should to file NJ individual with income from out of state, IL as non-resident Corp, PA as resident Corp with income from outside.

I checked PA and Corp must to do the return. No tax for Corp but shareholder must pay income tax. PA and NJ has agreement, so can he get in NJ tax credit for tax paid in PA? 

[qbteachmt]

You used the phrase "PA as resident Corp with income from outside."

Your corporation did no business in PA? And you stated this is IL services, but there are some States with sales taxes for specific services rendered remotely.

You have to look up if there is sales tax nexus, if there is simply a corporate filing report for PA or it's more than this, and other details for everything you are asking. No one person bothers to know everything, and requirements change.

Here's a place to start:

https://mburrkeim.com/tax-forms/pennsylvania-tax-forms/

[sabkosl13]

I was looking for information about requirements in PA and IL. And unfortunately, there is a whole list of things that should have been done in IL before starting the business but were not. Taxpayer must complete them first and get the State ID number. I can't do a tax return without it.

The client simply did not seek professional help when he started and now, he has a lot of problems.

Anyway, thank you very much for your help.

[qbteachmt]

"I was looking for information about requirements in PA and IL."

Yes, that's why I pointed out it's unlikely a ProSeries peer user community can answer such specific details, without us doing your research. I gave a PA-specific link for your reference.

"And unfortunately, there is a whole list of things that should have been done in IL"

Yes, they are the worst, and I somehow became an IL sales tax go-to person when I started helping some clients in IL, and I'm in MT and we don't even have Sales Taxes!