2020 FORM 568 Limited Liability Company Return of Income is for both reporting the LLC Fee and the business activity, but there are exceptions.
Your individual tax return is for paying the tax. Where it is reported on your tax return depends on how the LLC is classified.
For more details, see: 2020 Instructions for Form 568, Limited Liability Company Return of Income which states:
C. Purpose
Use Form 568 to:
- Determine the amount of the LLC fee (including a disregarded entity’s fee) based on total California income.
- Report the LLC fee.
- Report the annual tax.
- Report and pay any nonconsenting nonresident members’ tax.
- Report income, deductions, gains, losses, etc., from the operation of a multiple member LLC that has elected to be classified as a partnership.
Use Form 568 as the return for calendar year 2020 or any fiscal year beginning in 2020.
D. Who Must File
An LLC may be classified for tax purposes as a partnership, a corporation, or a disregarded entity. The LLC should file the appropriate California return.
Form 568 must be filed by every LLC that is not taxable as a corporation if any of the following apply:
- The LLC is doing business in California.
- The LLC is organized in California.
- The LLC is organized in another state or foreign country, but registered with the California SOS.
- The LLC has income from California sources (Nonregistered foreign LLCs, see Exceptions to Filing Form 568, below).
An LLC is not required to file a tax return and is not subject to the annual tax and LLC fee if both the following are true:
- The LLC’s taxable year is 15 days or less.
- The LLC did not conduct business in the state during the 15 day period.
