Legal Question in Business Law in Virginia

Do we need to register with the VA SCC (foreign qualify), and file VA 502 partnership return?

We have an LLC partnership incorporated in Delaware. It has 2 foreign partners in El Salvador, and 1 partner local to Virginia. Principal address of company is listed as the home of the partner in Virginia, mainly for ease of mailing inside the US. Income is all being generated outside the US (in El Salvador). No sales or employees or income is coming from VA. The income is from US source companies all over the US (CO, OR, CA), but again all sales and production are being done from the offices in El Salvador. All we are doing in the VA office is the accounting. 2022 was the first year that the partnership generated any income.

Asked on 3/21/23, 9:36 am

1 Answer from Attorneys

Frank Natoli Natoli-Legal, LLC

This is a tax question, not really a business law one really. So check with your CPA.

That said, yes, your VA multi member LLC will be required to file a 1065. I think in VA this is still just an informational return right? The LLC is a pass-thru entity so the imcome you dervived as a member, irrespective of whether that flowed through another country will be taxed to your personal return.

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Answered on 3/21/23, 9:42 am

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