2021 CA Form 568 Company Tax Fee for Single Member LLC formed in 2021

[apip]

Hi @GeorgeM777 any update at all to this question? There's multiple new people in the thread who are affected by this and would like to know when TurboTax will be updated to appropriately implement the CA law as advised by the CA FTB

[annmarcam]

I'm in this situation too.  Thanks all who have asked & researched answers so far. Replying to get notified of follow-up.

[s9231]

Hello, where is TurboTax with this?   I filed estimates taxes for an extension, so it still applies to me.  Thank you!

[GeorgeM777]

In TurboTax there is now the option for the taxpayer to claim the first year exemption from the CA annual tax.  The process to claim an exemption is essentially the same whether you are using TurboTax online or TurboTax CD/download.  

When you are in the CA section, go to your Business Summary page, click done if there are no changes to make and the next screen you should see a question about whether your LLC is a single member LLC.  Continue through the application and you will see a screen showing the First Year Exemption Worksheet.  Place a check in the appropriate box to claim an exemption for the annual tax.

@9231

[Expert1040]

Thanks everyone(SMLLC kings&queens) in the thread for your strong standing on the right side to take it to the final solution. It helps for beginners like me this year.

[wayward_son]

I formed an LLC in California in 2022. Turbo Tax creates California form 568. I check the box that says it's the first year so I am not supposed to owe the yearly $800 California Tax on business entities. And indeed on CA 568 $0 is entered. But then Turbo Tax generates California form 3352 which it says to send in with $800. So which is it? Do I ignore this because it's my first year? Or do I owe this?

[Expert1040]

the generated 3522 is for 2023 tax year and due by April every year and it is not for TY 2022. you can either pay along with filling  or ignore the form if you pay online separately

[wayward_son]

Does this mean it is deductible on my 2023 federal taxes?