Check the box above the error screen to acknowledge that you realize Form 568 must be sent in separately.
Yes, you need to file this but you do not need TurboTax Business for single member LLCs. TurboTax does let you e-file the rest of your return and allow you to mail the 568 separately.
As TurboTax Expert AndreaC1 found:
TurboTax Business only handles the multi-member LLC, not single-member. If you are using TurboTax Home & Business desktop version or Self-Employed online version, the Form 568 has to be printed and mailed.
Form 568 for single-member LLC's can't be e-filed in any of the TurboTax product versions.
The State of California’s Franchise Tax Board will allow you a waiver based on a few reasons, and due to technology constraints of the software you are using, you can request the e-file waiver.
Follow these steps to get Form 568 and file it directly with the Franchise Tax Board of California:
FRANCHISE TAX BOARD
PO BOX 942857
SACRAMENTO CA 94257-0501
