Closing LLC business in CA with termination short form cancellation. Question about what to file

[kkmoua]

I created my single member LLC in March 2024 registered in California. I submitted a termination short form cancellation in October 2024 since I did not conduct any business (nor make any profits) with the LLC and the LLC's status has been displayed as "terminated" on the bizfileonline.sos.ca.gov website since then.

I've already called and confirmed with the FTB CA and they said that the $800 annual fee should be waived since I filed the termination short form and the LLC has been terminated.

Is there anything else I need to file when filing my taxes for federal and CA state in regards to my single member LLC closing? 1040 schedule C or 568 Form? Any other forms?

Will turbotax offer services to help me with this in the process? I use turbotax to file my taxes every year.

[PatriciaV]

Your single-member LLC activity would normally be reported on your personal Form 1040 tax return on Schedule C. If you had no activity for the year, you don't need to include that form in your return.

If you obtained an Employer Identification Number (EIN), you may receive correspondence from the IRS asking about the company. You can call the agent listed on the letter and explain what happened.

You may also hear from the state of California for the same reason, although filing the termination form should answer any questions they have.

[kkmoua]

Thanks for the response.

If I have moved homes (my LLC was tied to my old apartment address), do I need to inform the IRS of the my business's address change with a for 8822-b even if it was terminated?

[x46359]

I have a very similar situation. Set up a SMLLC, did not conduct any business (i.e. no revenue, no liabilities, etc.) and terminated (via short form LLC-4/8) with SOS all within 4 months. 

It is still unclear whether a final form 568 needs to filed with CA FTB. Near the bottom of this page (https://www.ftb.ca.gov/forms/misc/3556.html), it says that "It has filed or states it will file a timely final annual LLC tax return." 

Can anyone confirm whether form 568 needs to be filed?

[kkmoua]

When I talked to FTB CA over the phone and asked about final form 568, they didn't know how to answer. The person over the call literally could not answer whether or not a final form needed to be file for our circumstance...

[x46359]

@PatriciaV, by chance do you have any further experience/expertise to add? Or maybe know of other folks in the TT community who might have thoughts?

[x46359]

I chatted with FTB (via chat) this morning and confirmed that we do need to file a final Form 568. https://www.ftb.ca.gov/about-ftb/newsroom/tax-news/june-2020/closing-a-california-business-entity.ht...

I'm not sure exactly what sections but I'm taking directions from the "Filing Requirements for Disregarded Entities" section https://www.ftb.ca.gov/forms/2024/2024-568-booklet.html ... "An SMLLC is required to complete Form 568, Side 1, Side 2, Side 3, Side 7 (Schedule IW), and pay the annual tax and LLC fee (if applicable). "

Also confirmed that we wouldn't have to pay the LLC fee since no business was conducted and LLC terminated within 12 months. 

Good luck!

[kkmoua]

Thanks for the updated information. Is there any box/selection where we can state that it is the final filing for form 568?

[PatriciaV]

Yes. You should check the Final Return box on Line H. TurboTax should handle this if you reported the LLC closed during the tax year. If not, there may be a similar question in the California state interview.

@kkmoua