Relocated my Single Member LLC to another state - Do I have to file taxes in both states?

This is a common situation with single-member LLCs that relocate mid-year. The short answer is yes, you'll likely need to file in Colorado, but not necessarily in Texas. For state tax purposes, a single-member LLC is typically treated as a disregarded entity, meaning the income passes through to your personal tax return. Since Colorado has state income tax and you generated income while physically there, you'll need to file a Colorado part-year resident return for the period you lived there. You'll report the income earned while a Colorado resident plus any Colorado-sourced income after moving. Texas doesn't have a state income tax, so there's no equivalent filing requirement there. However, be aware that Texas does have a franchise tax that applies to LLCs, though there's an exemption if your revenue is below a certain threshold (currently $1.23 million). The concept of "nexus" refers to having sufficient business presence in a state to trigger tax obligations. Physical presence definitely creates nexus, but continuing to have Colorado clients may also maintain your nexus there even after moving.

I went through something similar when I moved my consulting business from New York to Florida. I was getting conflicting advice until I found taxr.ai (https://taxr.ai) which was super helpful for my situation. They analyzed my LLC documents and gave me a clear breakdown of my filing requirements in both states. The tool confirmed I needed to file as a part-year resident in New York and showed me exactly how to apportion my income based on my specific situation. It also guided me through what counts as "doing business" in a state after you've physically left. Since I had a similar situation with ongoing clients in my previous state, it was really relevant to your situation. They also helped me understand the LLC registration requirements in both states and how that impacts my tax obligations. Definitely worth checking out if you want clarity on your specific situation.

Just wanted to follow up - I decided to try taxr.ai despite my initial skepticism. I have to admit it was actually really helpful for my multi-state LLC situation. I uploaded my documents and got a comprehensive analysis that showed exactly which states I needed to file in and why. The report broke down the different nexus rules for each state where I had clients and explained which activities triggered filing requirements. It also showed me how to properly allocate income between states based on where I performed the services rather than just where clients were located. I was able to confidently file in the correct states and even discovered I didn't need to file in one state where my CPA had previously told me I needed to. Saved me a bunch of money on unnecessary filings.

When I moved my photography LLC from Illinois to Georgia, I spent WEEKS trying to get someone from the Illinois Department of Revenue on the phone to explain my filing obligations. Kept getting disconnected or waiting for hours. Finally, I used https://claimyr.com to get through to an actual person at the state tax office. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c It got me connected to an Illinois tax rep in about 15 minutes instead of the 3+ hours I spent on my own. The rep confirmed I needed to file a part-year return for myself and explained exactly how to report the ongoing Illinois client income after my move. They also told me about a specific form I needed to file to properly dissolve my LLC registration in Illinois since I wasn't going to continue doing business there. This saved me a ton of confusion and potential penalties. Might be worth trying if you need specific answers from the Colorado Department of Revenue about your situation.

I have to apologize for my skepticism earlier. After another frustrating 2-hour hold with the California tax board that ended in a disconnection, I decided to try Claimyr. Within 20 minutes, I was actually speaking with a CA tax specialist who answered all my LLC-related questions. The representative confirmed exactly which forms I needed for my multi-state situation and explained how California's economic nexus rules would affect my business even after I physically left the state. They also helped me understand how to properly categorize different types of income on my non-resident return. This saved me from making a costly mistake on my filings. I was planning to stop filing in California entirely after moving, but it turns out I still needed to file non-resident returns because of my ongoing clients there. Would have been a nasty surprise at audit time.

Don't forget about local taxes too! When I moved my consulting LLC from Philadelphia to Chicago, I had to deal with not just PA and IL state taxes, but also Philadelphia city tax and Chicago's business tax. The city taxes were actually more complicated than the state taxes in some ways. Philadelphia continued to claim I owed city tax on income from Philly clients even after I moved. Check if any of the local jurisdictions in Colorado have their own tax systems that might apply to your situation.

Just wanted to add from my experience - make sure you keep VERY detailed records of when you physically relocated and when you started operating from the new state. I moved my e-commerce LLC from Pennsylvania to Florida mid-year and got audited because the revenue pattern didn't clearly show a transition point. I had to provide lease agreements, utility bills, bank statements showing ATM withdrawals in the new state, and even receipts from business purchases to prove when I actually started operating from Florida. It was a nightmare because I hadn't documented the move properly. Also, if you're selling products rather than services, the rules get even more complicated with sales tax nexus in multiple states.

Remember that LLC registration and tax filing are two different things! I kept my Wyoming LLC registration even after moving to Oregon because Wyoming has better asset protection laws. But I still have to file and pay Oregon taxes as that's where I physically operate the business. You might want to consider maintaining your LLC registration in whichever state has more favorable business laws while still complying with tax filing requirements based on where you actually operate and have clients. Texas has some good liability protections for LLCs that Colorado doesn't.

Great discussion here! As someone who went through a similar LLC relocation from Nevada to Washington state, I wanted to add a few practical tips that helped me navigate this process. First, regarding the $78k income split - document EXACTLY when you moved and what income was earned where. The IRS and state tax agencies love clear documentation. I created a simple spreadsheet tracking income by client, date earned, and location where I performed the work. Second, don't overlook estimated tax payments! If you were making quarterly payments to Colorado and now need to make them elsewhere, you'll want to adjust your payment schedule mid-year to avoid penalties. Third, consider consulting with a tax professional who specializes in multi-state businesses before making any final decisions about dissolving your Colorado LLC registration. Sometimes maintaining registration in both states can be beneficial depending on your specific business structure and future plans. The tools mentioned above (taxr.ai and claimyr.com) sound helpful, but also make sure you're working with someone who understands the nuances of your specific industry and client relationships. State tax laws can be surprisingly specific about what constitutes "doing business" in a state. Good luck with your filings!