SMLLC Forms

[Kellylynn444]

I'm a recently formed LLC and I just found out that I need to file form 568 this tax year.  I have always filed as a sole proprietor using turbo tax for self employed , do I still file that way and will turbo tax know to file the 568 form for me as well? 

[MarilynG1]

You can choose how you want your LLC business to be taxed: either as a partnership or a corporation (or, if you have a single-owner LLC, as a sole proprietorship).

As a sole proprietor, you can continue to use TurboTax Self-Employed to prepare your return.

Here's more info on LLC's and Taxes.

@Kellylynn444 

[Kellylynn444]

Ok great, so does that mean I do not have to file form 568 with the state of California if I'm doing my taxes if I'm using the self employed sole proprietor? 

[DianeW777]

Yes, you are required to file For 568 with California (CA).

• We require an SMLLC to file Form 568, even though they are considered a disregarded entity for tax purposes. They are subject to the annual tax, LLC fee and credit limitations.
  • SMLLC for CA

[Kellylynn444]

OK so does turbo tax do this form for me or do I need to do it myself?

[MinhT1]

As your LLC is a disregarded entity, you file it with your personal tax return using TurboTax Self-Employed,

However, you still need to file form 568 for California and need to fill it in manually and mail it.

Form 568 is supported by TurboTax Business, but you do not need it for your SMLLC.

Please read this CA document for more information.

[Kellylynn444]

OK so let me see if I understand this.  I still file my taxes and a sole proprietor using the self employed taxes.  Then I have to manually fill out 568 and send it in to the state? 

[GeorgeM777 · Accepted solution]

Yes, No, and Yes, but by e-filing.  Yes, you still need to complete your taxes using TurboTax Self-Employed.  We assume you are using the online version of TurboTax.  Assuming you are using the online version of TurboTax Self Employed, TurboTax will prepare California Form 568, Limited Liability Company Return of Income for you.  Therefore, you do not need to manually prepare Form 568.  In fact, when you are entering your information into the CA section of TurboTax, you should see the screen, Creating Form 568.  On that same screen, TurboTax will indicate that when you are done preparing you CA return, you will be able to print out Form 568.  However, continue through the application.

On the screen, California requires that you e-file Form 568, TurboTax will indicate that it can e-file Form 568 for you provided you only need to file a single Form 568.  If you have more than one single member LLC, TurboTax does not support the e-filing of multiple Forms 568.  Thus, with multiple Forms 568, you will need to, among other things, print out Forms 568 and mail them to CA Franchise Tax Board.  

@Kellylynn444