I started an LLC in June 2022. It has not proved profitable and I have decided to close the business only 9 months later. This is my first time filing CA Form 568 for the LLC. Currently, I've selected Initial Filing. The California FTB requires the 568 to be filed as a Final Return in order to dissolve/ close down the business.
Can my form serve as both my initial and final return? Can I check both boxes?
Thank You
Probably not. You can only mark “Final Return” if you are filing a final year tax return. If you opened in June and closed your business nine months later, then 2022 would not be your final tax year.
However if you cancel your LLC within one year of organizing, you can file Short form cancellation (SOS Form LLC-4/8) with the SOS. Your LLC will not be subject to the annual $800 tax for its first tax year.
Learn more at Limited liability company.
Thank you for your reply, Ernie50. So what would be my process to fully close out the business? Do I need to amend the 568 to show as final? Or will filing the Short Form Cancellation LLC 4/8 suffice?
The Short Form Cancellation is to close your LLC with the State of CA. You will still be required to report your business activities from 1/1/2023 through closing on your 2023 tax returns and will mark your 2023 CA 568 as the final return.
@PalmSprings2020