My husband and I have a LLC domestic partnership. On form 568 I am having problems. It says we are a single member and it must be checked. When I check it , it then says line K is wrong.
Our entry on line K is 2 and lights up. We get 2 K-1
I am just going in a circle and can't figure out what to do.
This happened last year , please advise.
P
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The CA 568 does have some questions about ownership %. As long as you and your husband both own part of the LLC, then it should allow you to complete the "multi-member LLC" form.
As per the Instructions on the FTB website:
Fill In All Applicable Lines and Schedules
Enter any items specially allocated to the members on the applicable line of the member’s Schedule K-1 (568) and the total amounts on the applicable lines of Schedule K (568).
Do not enter these items directly on Form 568, Side 4, Schedule A or Schedule D (568).
Do not apply the apportionment factor to the items on Schedule K (568).
Whole numbers should be shown on the return and accompanying schedules.
Name, Address, California SOS File Number, and FEIN
Before mailing, make sure entries have been made for all of the following:
Use the Additional Information field for “Owner/Representative/Attention” name, and other supplemental address information only.
Yes, you should receive 2 Schedules K-1 because you do have two members to your LLC.
Check the question before the question that tells you to mark the box for single member LLC, maybe you selected an incorrect option or missed a question.
You are definitely 2 owners/members.
From the instructions for CA 568:
Question K
Enter the maximum number of members in the LLC at any time during the taxable year. For multiple member LLCs, the number of Schedules K-1 (568) attached to the Form 568 must equal the number of members entered on Question K. Do not use abbreviations or terms such as “various.”
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