Friday, June 15, 2012

PA RCT-101 return

Don’t forget that a PA RCT-101 filing is required even for single member LLCs. For many small businesses this is a tedious form resulting in little to no taxes due. It is akin to a PA franchise tax. Instructions for this form are cryptically found by searching for something else as detailed below:

Businesses not formed under the laws of the Commonwealth of Pennsylvania whose Pennsylvania activity during a tax year is considered de minimis, as detailed in ct_bulletin_2004-01, may not be required to file a complete PA Corporate Tax Report, RCT-101, for that period. Instead, these corporations may file RCT-101D, affirming PA activity during the period is de minimis. A corporation preparing to file RCT-101D is reminded that a RCT-101D is not a tax report, and the statute of limitations regarding the assessment of tax does not apply.

Google the bulletin for more info but a quick heads up: Only the solicitation to sell tangible personal property is afforded immunity from the corporate net income tax. The sale or delivery and the solicitation for the sale or delivery of any type of service does not qualify. There are MANY other disqualifying factors.

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