I am filing my business as sole proprietor. But for California state taxes why does turbotax generate form 568 and ask me to submit Secretary of State file no. ? Help.

[Sourabh]

I am filing my business as sole proprietor. But for California state taxes why does turbotax generate form 568 and ask me to submit Secretary of State file no. ? Do I have to pay $800 of fees for LLC in California even if I am a sole proprietor ?

Help.

[JulieR]

Did you incorporate your business as an LLC in California?

[Sourabh]

No.. I didnot..

[Sourabh]

If I am operating business as a sole proprietor then I shouldn't have to file form 568.. I used turbotax last year and it didn't generate form 568.  Why is it asking me to do it now ?

[Sourabh]

Why is it not generating Sch C like for year 2017 ?

[VolvoGirl · Accepted solution]

I made some screen shots

[VolvoGirl]

You have inadvertently activated the Calif LLC return. To turn it off, go to the Calif Topic List "Business / Sch C Wks" screen that asks "Is *business name* a Single Member LLC for California filing purposes?", and answer No.

Go to the State tab
Let's get your State Taxes Done Right - Click on Continue
Status of your State Returns - Click Continue up by California
Then click Edit by Income & Adjustments
Then on the page Income California handles Differently click Revisit by Business Profit or Loss Adjustment
Click Edit by the Business Name
Next screen,  Is your Business owned by a Single Member LLC?  Click on NO at bottom

[starlight7640]

yes