My wife and I are sole members of an LLC domiciled in California which is a community property state. The LLC owns and rents real estate. I initially filed Form 1065 and CA Form 568 for 2023 with two K-1's, one each for my wife and me using Turbotax Business for Desktop. I have since learned that as a married couple in a community property state, our LLC qualifies for IRS treatment as a disregarded entity per IRS Revenue Procedure 2002-69. So for federal taxes we can avoid the Form 1065 and K-1's and will report LLC activity directly on Form E of our joint tax return. I will correct this with the IRS by amending the initial Form 1065 and K-1s to a final 1065 and K-1's. However, my question is how to achieve this same result on CA Form 568. How should I amend Form 568 initially filed as a multi-member LLC with two K-1's to a single-member LLC, such that going-forward I will file Form 568 for our LLC annually? I cannot file 568 a final return because I am required to file Form 568 annually for the LLC going-forward. Any help is greatly appreciated. Thanks.
According to the California instructions for filing an amended return, you can submit another Form 568 to the Franchise Tax Board and check the box on the form, "Amended Return". The instructions also state, "If you’re not changing your tax liability (income, credits, deductions, etc.), contact us."
You can prepare Form 568 in the individual product TurboTax Home and Business as well. In Forms mode, click Open Form and type in "568".