Pass through taxation applies to Federal income taxes, it doesn't necessarily apply to state and local taxes. Some states and cities tax at the entity level and some tax at the owner level. In either case, all cities and states tax based on the "three factor formula" where the work is performed, where the sales are made and where the the business property is located. If all the work is done in Philly, all the sales are made out of Philly and all the business property (probably a computer or two, maybe a server and some inventory). Then it will be subject to Philly city taxes. It doesn't make a bit of difference what the address of the organizer is. In fact, it's quite common if a lawyer is used to have the lawyer's address on the filing.
Answered on Jun 22nd, 2015 at 12:22 AM