I formed a single member llc in Delaware. I live in California. No income has been generated yet. As I am completing the CA State return, Do I need to file form 568?

[Trauton]

My confusion is related to the need to file the form if I have done nothing in CA other than living here.

[DS30 · Accepted solution]

No you will not need to file a CA Form 568 for a DE registered SMLLC. Form 568 is for CA registered LLCs only.

[Trauton]

Thank you DeeS for your helpful answer, even after reading the CA Franchise Tax Board website, I did not realize that it applied to CA registered LLCs so this is very illuminating!

[bhutch]

So how do you stop TurboTax from having you filling out and submitting a California Form 568 on your California return, when you LLC is in another state?

In my example I live in and work in California (regular day job). I have a Single Member LLC in Utah for a rental property. The IRS has confirmed my Single Member LLC status. However, when doing my California Tax return in Turbo Tax it sees my LLC from my federal return and seems to think it is a California LLC, I suspect. Just don't know where in Turbo Tax to fix this.

[DaveF1006]

California will tax you on all income but may give you a credit if you paid taxes to other states.  if you paid Utah taxes for that rental property then a credit  is allowed for net income taxes paid to another state . The credit is applied against California net tax less other credits.

if you paid income taxes on the property in Utah, you will report this in your California return. As you navigate through your return you will eventually reach a page that says "Take a look at California credits and taxes"   Underneath are some selections and you will make the selection that says Other State Tax Credit.  Here is where you will record your tax paid to Utah regarding your rental property.

To determine the tax paid, you will need to prepare your Utah non-resident return first reporting income from your rental property and then prepare your California state resident return.   

[sagar1285]

Hi, were you able to fix this. I am in same situation. I have LLC in TX and just moved to California and turbo tax is forcing me to fill form 568 I cannot delete that section or tell turbo tax not to file 568

[sagar1285]

Butch were you able to fix this.