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New Member
posted Mar 8, 2024 9:35:16 PM

CA LLC Fee for Single Member LLC During 1st Year

Hello! I'm attempting to file my SMLLC taxes along with my personal CA taxes, and since my LLC was registered in December (1st year) I shouldn't have to pay the $800 CA LLC fee. Apparently I only need to file Form 368 and Form 3536, but TurboTax is automatically creating Form 3522 and filling it in as if I was paying the LLC fee. I don't want to pay it if I don't have to so if anyone has any idea why this is happening or if I mis-clicked somewhere, please let me know!

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1 Replies
Employee Tax Expert
Mar 14, 2024 12:15:29 PM

Yes, go back the California state topic and look for a question about this being your first year to file for your SMLLC. 

 

  1. Open your return and click on Your State Returns in the left menu.
  2. Click Edit next to California.
  3. Continue to the tax summary page and click Edit next to Income and adjustments.
  4. On the page "Here's the income that California handles differently," click Revisit next to Business Profit or Loss Adjustment under Business.
  5. Notice the note on the Business Summary page to edit your business if it is a SMLLC.
  6. The next page asks if the business is a single member LLC. Click Yes.
  7. Continue to the page Single Member LLC filing. A sub-form will appear.
  8. Enter the LLC name and Secretary of State File No.
  9. Under Line H, check the box for "Initial Return" (this may be already checked).
  10. Answer the questions that follow.
  11. In most cases, you can check the box on Line 2A to confirm you met the first year exemption.
  12. Enter the business activity code on Line J.
  13. Answer the rest of the questions and complete the owner title & address info.
  14. Review the rest of Form 568 in case you need to enter anything else.

 

You may have errors on review, but these steps should complete most of the form and exempt your SMLLC from the annual fee.