In the CA 568 it wants that disregarded entity checked. So you are saying that if I file a 1065 I am not a disregarded entity?
The other questions were:
Also, I can change profit percentages between years (e.g., 50/50 to 80/20 to 30/70 etc.)? Are there any issues with doing that? (I want to) CPAs in the past just allocated profits differently than the stated 50/50 percent, and included a statement that it was proportional share of aggregate.
Next, I find that CA 568 M-1 is out of balance by $800 (the amount of the LLC tax). I suspect that this stems from the state tax being deductible on the 1065 and not on the 568, and the inclusion of the LLC tax on line 4b of the 568 M-1. Thoughts on how to fix this?
