My wife and I are sole members of an LLC domiciled in California which is a community property state. The LLC owns and rents real estate. I initially filed Form 1065 and CA Form 568 for 2023 with two K-1's, one each for my wife and me using Turbotax Business for Desktop. I have since learned that as a married couple in a community property state, our LLC qualifies for IRS treatment as a disregarded entity per IRS Revenue Procedure 2002-69. So for federal taxes we can avoid the Form 1065 and K-1's and will report LLC activity directly on Form E of our joint tax return. I will correct this with the IRS by amending the initial Form 1065 and K-1s to a final 1065 and K-1's. However, my question is how to achieve this same result on CA Form 568. How should I amend Form 568 initially filed as a multi-member LLC with two K-1's to a single-member LLC, such that going-forward I will file Form 568 for our LLC annually? I cannot file 568 a final return because I am required to file Form 568 annually for the LLC going-forward. Any help is greatly appreciated. Thanks.
