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jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3159
Experience:  I've prepared all types of taxes since 1987.
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I am in the process of completing the CA Form 568. Were a

Customer Question

I am in the process of completing the CA Form 568. We're a Foreign LLC (WA State based). We had a contract in California providing contract services to the Coast Guard. The Company has only one Member which is the Owner and she files as a Sole Proprietor. She has filed a Schedule C with her 1040.

Is she required to complete the CA Form 568 if she has filed her 1040? If so, where would I list the gross revenue from CA and where would I need to expense out payroll, office expenses, insurance, rent and such? The year operated at a loss as well. Appreciate the assistance!
Submitted: 3 years ago.
Category: Tax
Expert:  jgordosea replied 3 years ago.

Yes, a single member LLC (SMLLC)that is disregarded for federal income tax and files Schedule C does file CA Form 5668.

From the form:
"Disregarded entities that do not meet the filing requirements to complete Schedule B or Schedule K should prepare Schedule IW by entering the California amounts attributable to the disregarded entity from the member’s federal Schedule B, C, E, F (Form 1040), or additional schedules associated with other activities."

Every SMLLC doing business in California must file its own return, and pay its own $800 annual tax and LLC fee based on its own income.

See instructions on page 13 of the Form 568 Booklet for more information on how to complete Schedule IW.

Please ask if you need more discussion or clarification.
Thank you.

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