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B11. If a Michigan LLC has a nonresident corporate partner, does that partner file an MBT return and report and pay tax on it's share of LLC income at the same 4.95% [rate]?

No. Assuming the corporation and partnership (LLC) do not constitute a unitary group, each would be a taxpayer and subject to the tax imposed under the MBT only if each had nexus in Michigan per MCL 208.1200(1). In order to meet the nexus standard, the taxpayer would need to have a physical presence in this state of more than one day or actively solicit sales and have Michigan sourced gross receipts of $350,000 or more. If the only activity the corporate partner has in Michigan is an ownership interest in a Michigan partnership, it would not have nexus in this state under either the physical presence or actively solicits standards stipulated in section 200(1) because it would have no property or employees in Michigan and does not actively solicit sales in Michigan.



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