LLC in a different state

Forum|Forum|2 years ago
March 18, 2024
1 reply
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Hi - I created an LLC in TX to manage my rental property in TX but I live in CA. It was single member LLC when incorporated but now it's a partnership LLC. I have a few questions:

1. I changed to partnership LLC in 2024. Should I file my taxes for 2023 as single member LLC or partnership LLC?

2. There is no option in TT to select the state where it was incorporated (TX in my case). LLC formation document has my CA address in it. TT is treating this LLC as it was incorporated in CA.

3. Do I have to file CA Schedule K-1 form 568 and 562? I don't have any rental income from 2023, only LLC incorporation expense.

Thanks

TurboTax Home & Biz Windows

PatriciaV

Level 15

1. Report the 2023 activity for your SMLLC on Schedule C of your personal return. The change in entity type didn't occur until 2024.

2. For a SMLLC, the state of incorporation isn't relevant. But be sure you entered a Texas business address for Schedule C. If you have income sourced in Texas, you may need to file a Texas Franchise tax report. Otherwise, the activity is reported your resident state income tax return.

3. California Form 568 is filed if your LLC is registered in California, even if it isn't actively doing business in California or doesn't have a California source of income.

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causerAuthor

Level 2

Thank you, @PatriciaV. I have a follow-up question.

Question: Can I enter the LLC's registered agent address in TX as the company address, even though the company address is my home address in CA?

3. California Form 568 is filed if your LLC is registered in California, even if it isn't actively doing business in California or doesn't have a California source of income.

Question: Since my LLC is not registered in CA then how can I avoid entering the information for CA form 568 and 562?

causerAuthor

Level 2

Hi @PatriciaV -

I am putting my registered agent's address as my company address, and there is no option to enter or not enter if this is a SMLLC or not.

If the form 568 and 562 are generated then do I have to send paper returns to CA state? It is asking me the date LLC was started in CA.

Thanks

Also, I have to enter details of my SMLLC somewhere and since my home address is in CA, TT is considering the LLC is in CA and generating forms 568 and 562.

I don't want the forms to be generated, so how and where can I stop that? There is NO income in 2023 and all i want is to enter LLC start-up costs in there.

Thanks