California state tax form 540 and form 568

[jackdee]

I have just formed my LLC with single member. I was wondering that when I file my state tax return do I need to file both form 540 and form 568 to the state of California? However, as I knew, Turbotax does not allow us to e-file the form 568. Does it also affect the form 540 too? Does anyone have any suggest that has any other tax software allow us to e-file the form 568. Thank you 

[JeffreyR77]

Your state income tax return is the CA 540.  That will be filed electronically. 

TurboTax allows you to prepare Form 568 to print and mail into the California Franchise Tax Board for your LLC.

[Jackson Lee]

dose Turbotax allows me to generate two form 568?

[JotikaT2]

Yes.

Your main input will be generated in the federal interview section of the program.  If you have two single member LLC's, you will have two different businesses reported on your federal return.  When you reach your state return, you will be asked about each business and whether they are single member LLC's or not.

After you have completed your input in the federal section of TurboTax, you can review your input in the state section of the program as follows to generate both 568 forms.

1. Select State in the black panel on the left hand side of your screen when logged into TurboTax.
2. This will take you to a screen titled Let's get your state taxes done right.  Click continue on this screen.
3. You will see the following screen titled Status of your state returns.  Select Edit to the right of California.

Proceed through the screens until you see the state asking questions about your business.  When you see the screen titled Business Summary, be sure to select Edit so you can generate the LLC filings for both 568 forms for each of your businesses.

The following screen will ask you if your business is owned by a single member LLC?.  Be sure to select Yes to generate the LLC classification on your state tax return.

[Jackson Lee]

Thank you for your reply. I just want to clarify about my situation. I have two single member LLCs, and both of them are formed during 1st month of 2021. However, since I do not need to use one of them, I decided to terminated one of them last month, and the one that I terminated did not make any transaction, and I already paid the $800 fee for the year 2021. Only the one LLC that I kept make transaction. Therefore, I decided to keep only one LLC.

Here are my questions:

1. Do I need to report $0 income for the LLC that I have just terminated during I file my 2021 federal tax return?

2. Do I still need to file the form 568 with California state for the LLC that I have just terminated with no income?

Thank you

[JotikaT2]

Your LLC will continue to be in existence until you file a dissolution documents with the Secretary of State.  You will still have a filing requirement with the Franchise Tax Board until you formally dissolve your LLC, regardless of if you had any activity or not.

You would need to file the Form 568. 

The only exception to the filing requirement would be if the LLC had a taxable year of 15 days or less and the LLC didn't conduct any business in the state during the 15 day period.

Please see the link below for more information from the FTB.

Filing requirements for dissolved entities

[Kathyd6527]

I just talked to an Intuit rep.  We found that 540 has been generated in the State section of the tax return.  However 568 is not supported in SINGLE member LLC filing. I received a demand to file from the State Franchise tax board.  Form 568 is 7 pages long with various scheduleS.  Not sure how I am going to go through 200+ intuit tax file to generate 568 corrrectly 🥲

[Kathyd6527]

Only on multiple member LLC, NOT for single member LLC 

[Kathyd6527]

Are you sure?  I was told 568 is not supported for single member LLC 

[VolvoGirl]

@Kathyd6527Are you filing your Single Member LLC on Schedule C in your personal return?   You should get a 568 for it and you can efile it. 

Seems like you can now efile 2020 CA 568.  See this post

https://ttlc.intuit.com/community/state-taxes/discussion/ca-form-568-single-member-llc/00/1921568

Here an old note I have..........TT/Calif has the 568 in it. If it is associated with a Schedule C then you need to check the box on the Calif Schedule C for "Single member LLC". A 568 will then be generated, pulling as much information from that Schedule C as is available.

[Kathyd6527]

Hi, thanks for your reply,

I had filed an extension for 2020 and will try soon to see if that works.  I need 568 for my 2019 return, which we tried the amend option but agent told me it was not supported for single member LLC filing.

[josephpetzel]

How do I get Ca form 568, year 2021, when doing my taxes on turbo tax. i am only offered form 540. I cant seem to find out how to find it.

[MaryK4]

In the California state tax return, look for Business Profit or Loss Adjustment in the income summary.  On the Business Summary page, Edit the business and you will see the screen below.  This will create the Form 568.  

An LLC may be classified for tax purposes as a partnership, a corporation, or a disregarded entity. The LLC should file the appropriate California return.  Form 568 must be filed by every LLC that is not taxable as a corporation if any of the following apply:

• The LLC is doing business in California.
• The LLC is organized in California.
• The LLC is organized in another state or foreign country, but registered with the California SOS.
• The LLC has income from California sources