It depends. Even if your LLC has no income, California requires you to file Form 568 to report the LLC's status and pay the annual $800 franchise tax. Here are some key points to consider:
- Filing Requirements: California mandates that all LLCs, regardless of income, file Form 568 annually. This is necessary to maintain the LLC's legal status and avoid penalties. If your LLC has no income, you still need to complete the form, but you won't owe additional fees beyond the $800 franchise tax.
- Error on Form 568: The error you're encountering might be due to incomplete or incorrect information. Double-check that all required fields are filled out, even if the income is $0. Ensure that the Employer Identification Number (EIN) and other details are accurate.
- This error probably is due to the fact that you can't e-file because there is to income to report. You can either fill in $1 for the income or if you still receive the error, you will need to print and mail the California return.
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