Help filing CA form 568 - simple question

[Chrissosa23]

I got a notice from the FTB and now I have to file 2019 form 568 for a business I had. It was a dropshipping business and I ended closing it in 2020.  I don't have documentation of what I bought or sold online for in 2019. They told me I have a reported income of $4600 which is fine if that's what I have to report.

My question is:

•What exactly do I need to fill out when I'm filling the form 568 (all seven pages? Or just the first 3 pages? 

•Do I just put $4600 as total income and the $800 for LLC fee and mail out the form? 

[JotikaT2]

It depends.  Assuming this is a single member LLC that is disregarded for federal purposes (meaning all income and expenses are reported on Schedule C with your federal return), then only sides 1, 2, 3, and 7 (Schedule IW) on Form 568 need to be completed using the 2019 and 2020 tax forms.  Your gross receipts per year will be reported on the tax return for each respective tax year.  If all of the $4,600 is from 2019, you will report it all as gross receipts on your 2019 tax return.

There is also an $800 annual fee which must be paid on LLC Tax Voucher Form 3522 for 2019 and 2020.

If you have not yet done so, cancel your LLC with the Secretary of State to avoid being assessed the yearly LLC fee.  Please see this link for more details on how LLCs are taxed in California.  If you have not yet cancelled your LLC, you will be subject to the LLC fee for each year until the date of cancellation even if you didn't have any business activities.

Finally, if you did not report this income on your federal return, you will need to amend your federal returns to include this income as part of your individual tax return.  Please see this link for more details on amending your return.  The changes made on your federal return will also pass through to your state individual tax return which will also need to be amended.