In the California state interview, designate only one of the two as an LLC. You will also need to adjust the state income for the "LLC" Schedule C so you report 100% of the taxable income. The franchise fee is $800 regardless of income, but the state does need the accurate income amount.
Follow these steps:
- Open your return and click on State Taxes.
- On the California Taxes page, click Edit beside Income and adjustments.
- Under Business, click Start/Revisit beside Business Profit or Loss Adjustment.
- Click Edit beside the business you need to report on Form 568.
- Click "yes" that this business is owned by a Single Member LLC.
- Continue after reading the Form 568 information.
- A sub-form will appear. You need to complete any boxes highlighted in red.
- Note the checkbox at the bottom of the form if you are not eligible to e-file Form 568.
- In most cases, you will not need to complete sides 4-5 or 7.
- When you reach Side 7, you can print Form 568 if you need to mail it.
- Follow the instructions for the Payment Voucher.
- Continue on to the Business Summary page.
If you are using TurboTax for Desktop, you can view and edit California Form 568 in Forms Mode.
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