Calif LLC-->No Fed or State Forms Filed in 2020 & 2021

[ok2laf]

Calif LLC Question

I am a Calif resident and opened/created a two person California LLC on 7/13/2020.  The primary reason to create the new LLC was the purchase (and titling) of a vacation property in Hawaii.  During 2020 and 2021, the Hawaii property generated income as a result of short term vacation rentals (all in Hawaii).  While I have filed personal taxes for all years in a timely fashion, I don't believe I filed any Fed or Calif tax forms on behalf of the LLC EIN for 2020 or 2021.  I have been paying the Calif LLC $800 fee on time and the website "bizfileonline_sos_ca_gov" shows that the LLC’s FTB Standing as "Good” along with:  SOS, FTB, Agent, VCFCF.  What do I need to do for the tax years 2020, 2021, and 2022?  If someone can reference the proper forms and publications then I can probably start the recovery for years 2020 and 2021 and then do the right thing for 2022.  The total LLC income for each year was always less than $250,000.

[Anonymous_ · Accepted solution]

If the other member of the LLC is not your spouse, then you almost certainly should have filed a Form 1065 with the IRS and issued a K-1 to each member (also a Form 565 with the state).

See https://www.irs.gov/instructions/i1065#en_US_2021_publink11392vd0e555

At this point you should seriously consider consulting with a local tax professional.

https://taxexperts.naea.org/listing/service/partnerships

[ok2laf]

Thank you very much for the prompt and helpful reply.  In this case my spouse is the second LLC member.  How does that change the outlook/next steps?

[Anonymous_ · Accepted solution]

In that event you have the option to treat the LLC as disregarded and report on your individual (presumably joint) federal income tax return if you hold your interests as community property in a community property state (e.g., California). 

See https://www.irs.gov/pub/irs-drop/rp-02-69.pdf