Margaret CPA in OH Posted January 18 Report Share Posted January 18 A new client in Philadelphia has begun a multi-member LLC based in TX taxed as partnership. My understanding, shaky at the moment, is that she will have to file a Business Income and Receipts Tax AND a Net Profits Tax return. This seems overkill but here she is. I am confused, however, about the statement that if there are less than or equal to $100,000 in Philadelphia taxable gross receipts, a NTL (No Tax Liability) form can be filed instead. I'm wondering why gross receipts would be taxed if there may be a net loss and possibly even no money to pay tax. And I'm wondering whether this means 100% of the gross receipts or only this client's share, about 18%. The form seems to have a $100,000 exclusion before tax but not sure whether 100% or her share is to be shown. Maybe I can convince her to move to the suburbs... Thanks for any help! Quote Link to comment Share on other sites More sharing options...
Lee B Posted January 18 Report Share Posted January 18 Oregon has Commercial Activities Tax based on gross receipts which is due and payable even if you have a loss. In my state the partnership would pay the tax. Some people refer to it as a "back door" sales tax. 1 Quote Link to comment Share on other sites More sharing options...
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