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As an equity partner in TX for a national firm, yes you do have to pay state income taxes for other states where your firm has offices. About 75% if the revenues for my firm originate from NY and CA, so I pay a fair bit in state taxes. Idk how my tax load compares with partners based in those states though…ive never done a side by side
Thanks. This is exactly what I’m curious about. Would be curious if any other partners can chime in about the how the state income tax load is carried by the resident and non resident partners in those states.
This is an oversimplification. This may be true at the partnership level but not at the individual level.
That makes no sense. You pay personal income tax based on your personal domicile.
Partners receive K1s, which means that the profits of the firm "flow through" to the partners, who are then responsible for the taxes of their "portion" of the firm's income.
Just trying to get a general gauge. Say both partners in the above scenario are receive 1m in income from the LLP. How much more if any is the FL partner taking home after tax.
They are not, K1 income is subject to taxes wherever the partnership does business.