single member LLC, not allowed to efile

[ellenklima]

I have a single member LLC and even though I state that on all the forms, TurboTax says it cannot e-file, because I am  NOT  a single member LLC.  We are filing jointly and our state is CA. I have TurboTax home and business

Please help.  I really want to e-file

Ellen

[RobertB4444]

A single member LLC is a disregarded entity and as such should file a schedule C as a self-employed individual or should be filing an 1120S after applying for and receiving an S-election.  There should be no problem with filing the self-employed schedule C paperwork using TurboTax home and business so be certain that you are entering the income and expenses in the self-employment section under wages and income on your federal return and you will be fine.

@ellenklima 

[ellenklima]

Thank you for the fast reply.  I did all of it and when I am in the state taxes and check my state input, it says no errors found.  But when I go through the review, it says one error.  the error is 

Cannot e-file state taxes because the LLC is NOT a disregarded entity.  But when it asks me if my LLC is a single member LLC I say YES.  

I can only surmise that it must be a software problem

[BrittanyS]

It would be helpful to have a TurboTax token.  The token provides a sanitized version of your return.  We will be able to see the numbers but not any personal information such as your name, SSN, or address.  

If you would like to do this, here are the instructions: 

In TurboTax Online, go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen, and you will get a Token number. 

In TurboTax CD/Download versions, go to the black panel on your screen and select Online. 

1. Scroll down and select Send tax file to Agent. 
2. You will see a message explaining what the diagnostic copy is.  Click send through this screen, and you will get a Token number. 

Reply to this thread with your Token number. 

We will then be able to see precisely what you are seeing, and we can determine what exactly is going on in your return and provide you with a resolution.

@ellenklima 

[ellenklima]

Thank you so much.  Here is my token number:   1102275

[BrittanyS]

e-file returnIf your business is a disregarded entity, you can follow these steps as a workaround to get the return to the e-file:

1. Delete State Return
   1. Click File
   2. Click Remove Return
2. Click State Taxes
3. Click Start Next to California
4. Continue Interview Questions until you get to "Business Summary" and click Done
5. Do not Click Yes for Single Member LLC; by not clicking Yes, the software will leave the business entity category as a disregarded entity and allow the return to be e-filed.

However, if the business was established with the CA FTB as a single-member FTB and is not listed as a sole proprietor, Form 568 will need to be completed, which is not supported by TurboTax to e-file.  The software stops the e-file process when you check yes for Single Member LLC.  If your business has been established as a single-member LLC with the CA FTB, you will want to leave the return as is and mail the return for processing.  

@ellenklima 

[ellenklima]

Thank you so much for the explanation.  I went to "file", but the "Remove state taxes" is not highlighted and I cannot click on it.

Ellen

[ChondelLO]

To help get you connected to the right person for assistance, please visit the link below for information on how to contact Customer Support.

How do I contact TurboTax? - Intuit

[ellenklima]

Hi again.  I found how to delete the state and did all you said and it still does not let me e-file.  It fills out the 568 for me, even though I say done at the Business summery page.

Can I just delete 568 and 3522?

I also called the phone number you provided, but need a support number.  10 digit number is required and my token number did not work.

[BrittanyS]

I'll walk you through what I did with screenshots to see if that helps!  When I deleted the state return and entered it again, it cleared the return and allowed for e-file.  Here are the steps with screenshots:

1. Click File and Remove state return
2. Click State Taxes
3. Click Start Next to California
4. Continue Interview Questions until you get to "Business Summary" and click edit next to each business
5. Click No for Single Member LLC; the software will leave the business entity category as a disregarded entity and allow the return to be e-filed.
6. Continue through all the business questions and click done. Repeat for all three businesses (see screenshots below)

@ellenklima 

[ellenklima]

Thank you so much for the screens.  I did exactly that and then continue with the interview until it checks the state return.  At this point TT finds errors and wants me to fill out the form 568.  When I go through it all and try to e-file, it gives me the same error message as before.  It says that I am a disregarded entity and I cannot e-file.

Can I just delete the 568 form?

[ellenklima]

Just tried to delete 568 and it does not delete it, it just says the form is not done, but it is still in there.

Would it be possible for you to call me so we can talk on the phone?  I know it is usual to do this, but I really think this is a TT problem and has nothing to do with my input.

 My phone # is [phone number removed]

[RobertB4444]

Form 568 is for your LLC fee in the state of California.  You have a fee that you have to pay to the state annually in order to operate an LLC in the state.  So, you can't delete it.  You actually need to file it.

@ellenklima 

[ellenklima]

I know.  So why is it still saying my LLC is NOT a disregarded entity?  why doe TT not allow me to e-file?  What can I do to change that?  I am going in circles here.  Please help

[PatriciaV]

Your best option may be to print and file your California return by mail. There may be something else in your return that is influencing the designation of disregarded entity. Unless you wish to start over again, your only option is to file by mail.