Husband wife LLC. We file 1065 and CA 568. TT wants the disregarded entity box checked. Googling I see that CA is a community property state. So do I check the disregarded entity box? My CPAs in the past did not (but I now think that is incorrect because they also told me that I am a disregarded entity).
Also, can I change profit percentages between years (e.g., 50/50 to 80/20 to 30/70 etc.)?
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?
