LLC Formation inquiry
Hello, I live in Illinois and plan to form a Wyoming LLC that will only sell digital software online worldwide. I will have no office, employees, or no business presence in Illinois as it is entirely digital, but since I live here, I want to confirm if I have to foreign qualify/register the LLC in Illinois, and which state taxes or other requirements would still apply to me personally.
Quick Answer:
As a CPA, I cannot provide legal advice. However, regarding your tax situation:
You likely do *not* need to foreign qualify your Wyoming LLC in Illinois if it has no physical presence or employees there. Illinois generally only requires foreign qualification for LLCs conducting business within the state. Your online sales alone, without a physical presence, may not trigger this requirement.
However, you will still be required to file Illinois personal income taxes on your profits from the Wyoming LLC, as your residency is in Illinois. You'll need to report your share of the LLC's income on your individual Illinois return, regardless of where the LLC is formed or operates. Consult a tax professional or refer to the Illinois Department of Revenue website for specifics. Wyoming may also have its own filing requirements for the LLC itself, depending on its income and structure.
Note: This answer is provided for convenience only. It is important that you speak to a CPA about your individual tax situation.
