Before you start your tax return you need to determining the correct tax Form that needs to be filed. An LLC with more than one owner defaults to a partnership classification, while an LLC with only one member defaults to a disregarded entity. However, an LLC may also elect to be treated and taxed as a corporation. The LLC must file the appropriate form according to how it is treated for California tax purposes.
For example:
An LLC treated as a partnership or as a disregarded entity that is doing business in this state under Revenue & Taxation Code (R&TC) Section 23101 or files an article of organization or certificate of registration with the Secretary of State must file California Form 568, Limited Liability Company Return of Income, pay the annual tax of $800, and LLC fee if applicable.
An LLC that is treated as a disregarded entity includes its income and expenses in its owner’s tax return. However, the LLC still needs to file a partial California Form 568 and pay the annual tax and LLC fee if applicable. See California Form 568 Booklet instructions for more information.
An LLC that is treated as a corporation that is doing business in this state, files an article of organization or certificate of registration with the Secretary of State or has California source income to report must file California Form 100, Corporation Franchise or Income Tax Return or California Form 100S, S Corporation Franchise or Income Tax Return, California Form 100W, California Corporation Franchise or Income Tax Return - Water’s-Edge Filers and pay the appropriate tax.
An LLC that has a filing requirement in California to report California source income but is not subject to the $800 annual tax because it is not doing business in California nor has it filed an article of organization or certificate of registration with the Secretary of State must file California Form 565, Partnership Return of Income, instead of California Form 568, Limited Liability Company Return of Income.
Here is the California Franchise Tax Board web page that summarizes the California and federal forms requirements:
https://www.ftb.ca.gov/businesses/structures/llc-filing-requirements.shtml
