Live in Oregon and work in Washington: Do I need to file Oregon state taxes?
Yes. Here's the answer to this question from oregon.gov: 3. I am moving into Oregon. What income will be taxed by Oregon? As an Oregon resident, you are taxed on ALL income regardless of the   source of the income. This includes, but is not limited to: You may need to pay estimated taxes if you don't have Oregon   withholding on your income. Unfortunately, you are required, but most states do have agreements with neighboring states that let the states share the collected taxes without the person having to pay double taxes. So being as this is your first tax return in your current situation, you might be wise to have a professional fill it out for you this year and then next year you can use it as a template. Additionally, I really would like to see someone challenge this across state lines taxation in court. It sure seems to me that it is a inter-state tariff/duty, which the state's are expressly forbidden from doing in the constitution.
"Be careful of the other answers here. Many are wrong or partially wrong. The question implies that you knew this, but for everyone else's benefit, you can keep you LLC organization and still elect to be treated as a S-Corp by the IRS just for tax purposes.  You do this by filing Form 2553 with the IRS. (You can also, by the way, elect to be taxed as a ""regular"" C-Corp if you want, although that's probably not advantageous.  See Form 8832.) The advantage of electing to be treated as an S-Corp is that income beyond what constitutes a ""reasonable salary"" are not subject to social security and medicare taxes as they would when paid was wages or counted as self-employment income on Schedule C.  Depending on what you need to pay yourself to meet the ""reasonable salary"" test, your overall income, and other factors about your business, this could result in tax savings. Contrary to other answers here, making this election will not force you to create a board of directors.  You are still an LLC for all purposes except taxes, so whatever requirements you had in organization and governance at the state level will not change.  You will have to file a ""corporate"" tax return on Form 1120S (and likely some corresponding state tax form), so that is additional paperwork, but this ""corporate"" return does not mean the S-Corp pays taxes itself. With a couple of exceptions, the S-Corp pays no taxes directly (and therefore does not pay at the corporate tax rate). Instead the S-Corp apportions its income, expenses, and deductions to the owner(s) on Schedule K.  The owners get their portion reported from the S-Corp on Schedule K1 and then include that on their personal Form 1040 to pay tax at their personal rate. In addition to filing Form 1120S, you will have to handle payroll taxes, which will create some additional administrative work and/or cost. Using a payroll service for this will likely be your best option and not terribly expensive. You've also got the issue of determining your reasonable salary within the rules, which is the subject of other questions on this site and other IRS guidance." The reciprocity agreement in the Washington DC area means that you only pay income taxes where you live, not where you work. Because you live in Maryland you only need to pay income taxes to Maryland. You need to do the following things. Line 3. If you are not subject to Virginia withholding, check the box   on this line. You are not subject to withholding if you meet any one   of the conditions listed below. Form VA-4 must be filed with your   employer for each calendar year for which you claim exemption from   Virginia withholding.  (a) You had no liability for Virginia income tax   last year and you do not expect to have any liability for this year. ... (d) You are a domiciliary or legal resident of   Maryland, Pennsylvania or West Virginia whose only Virginia source   income is from salaries and wages and such salaries and wages are   subject to income taxation by your state of domicile. My company has its only office in Maryland, and conducts all of its   business there. Several of our employees are Virginia residents who   commute to work on a daily basis. Are we required to withhold Virginia   income tax from their wages? No. Because your company is not paying wages to employees for services   performed in Virginia, you are not required to withhold Virginia tax.   If you would like to withhold the tax as a courtesy to your employees,   you may register for a Virginia withholding tax account online or by   submitting a Registration Application. Additional withholding per pay period under agreement with employer.   If you are not having enough tax withheld, you may ask your employer   to withhold more by entering an additional amount on line 2. They mention the struggling economy but not McD's caving to the franchisees and getting rid of the dollar menu at precisely the wrong time.  Also, McD's long-time strength -*consistency* is now a given in any franchise operation. It isn't novel anymore and is perceived as *bland sameness*.  The posts about Five Guys, Whataburger, In-N-Out, etc. show that regional favorites still have an impact and a place in our hearts and there's the smaller nationals as well, like White Castle, Carls Jr./Hardee's, and A&amp;W.  Whenever I visit Washington or Oregon Burgerville USA is de rigeur, or Arctic Circle or SteakBurger.  Also, the article talks about burgers vs. 'Other' like OS market share. Does that make Fast Casual the iOS of dining (flame bait)? Does that make the burger joints equivalent to Android version fragmentation?  Edit: fixed typos from mobile posting. Since you're a US citizen, submitting W8-BEN was wrong. If you read the form carefully, when you signed it you certified that you are not a US citizen, which is a lie and you knew it. W9 and W8 are mutually exclusive. You're either a US person for tax purposes or you're not, you cannot be both. As a US citizen - you are a US person for tax purposes, whether you have any other citizenship or not, and whether you live in (or have ever been to) the US or not. You do need to file tax returns just like any other US citizen. If you have an aggregate of $10K or more on your bank accounts outside of the US at any given day - you need to file FBAR. FATCA forms may also be applicable, depending on your balances. From foreign banks' perspective you're a US person, with regard to their FATCA obligations. Whether or not you'll be punished is hard to tell. Whether or not you could be punished is easy to tell: you could. You knowingly broke the law by certifying that you're not a US citizen when you were. That is in addition to un-filed tax returns, FBAR, etc etc. The fact that you were born outside of the US and have never lived there is technically irrelevant. Not knowing the law is not a reasonable cause for breaking it. Get a US-licensed tax adviser (EA/CPA licensed in the US) to help you sort it out. "As a Canadian resident, the simple answer to your question is ""yes"" Having worked as a tax auditor and as a Certified Financial Planner, you are required to file an income tax return because you have taxable employment income. All the employer is doing is deducting it at source and remitting it on your behalf. That does not alleviate your need to file. In fact, if you don't file you will be subject to a no filing penalty. The one aspect you are missing is that taxpayers may be entitled to tax credits that may result in a refund to you depending on your personal situation (e.g spousal or minor dependents). I hope this helps." Both states will want to tax you. Your tax home is where you maintain a domicile, are registered to vote, etc. and you will probably want to keep this as MA since you state that MA is your permanent residence and you are staying in a rented place in PA. But be careful about voter registration; that is one of the items that can be used to determine your state of residence.  OK, so if you and your spouse are MA residents,  you should file jointly as residents in MA and as nonresidents in PA. Do the calculations on the nonresident return first, and then the calculations on the resident  return. Typically, on a nonresident tax return, the calculations are effectively the following: Report all your income (usually AGI from the Federal return).  Call this $X. Compute the PA state tax due on $X.  Note that you follow the rules for nonresidents in doing this, not the calculations used by PA residents. Call the amount of tax you computed as $Y. What part of the total income $X is attributable to PA sources? If this amount is $Z, then you owe PA $Y times (Z/X). On the resident return in MA, you will likely get some credit for the taxes paid to PA, and this will reduce your MA tax burden. Usually the maximum credit is limited to the lesser of actual tax paid to PA and what you would have had to pay MA for the same income. As far as withholding is concerned, your employer in PA will withhold PA taxes as if you are a PA resident, but you can adjust the amount via the PA equivalent of IRS Form W4 so as to account for any additional  tax that might be due because you will be filing as a nonresident.  Else you can pay estimated taxes via the PA equivalent of IRS Form 1040ES. Similarly, your wife can adjust her withholding to account for the MA taxes that you will owe on the joint income, or you can pay estimated taxes to MA too. Note that it is unlikely that your employer in Pennsylvania will withhold  Massachusetts taxes (and send them to Massachusetts) for you, e.g. if it is a ma-and-pa store, but there may be special deals available if  your employer does business in both states, i.e. is a MA-and-PA store. A couple things. First of all, most people's MAIN source of income is from their job, but they have others, such as bank interest, stock dividends, etc. So that income has to be reported with their wage income. The second thing is that most people have deductions NOT connected with their job. These deductions reduce income (and generate refunds). So it's in their interest to file. If I hire someone in Utah to do sales for me over the phone, and he   works out of his home, am I required to register an LLC or file my   current one as a foreign entity in Utah? Yes, since you've established presence in Utah. You'll register your current LLC in Utah, no point creating another one. If my sales guy, or I, call businesses in, say, Florida, and sell a   few businesses our services for online work like maybe a website   design, etc. Are we required to file our LLC In Florida as either a   new LLC or a foreign one? No, you need to register where you (your company, including your employees or physical offices) are physically present. You don't need to register in any state you ship products or provide services to. If no-one of your company's employees is present in Florida and you don't have an office/rent a storage there - then you have no presence in Florida. If you actually go there to provide the services - then you do.