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Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3362
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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I started a single-member LLC in California in 2015. I

Customer Question

I started a single-member LLC in California in 2015. I decided to do taxes using TurboTax. I managed to get my federal return completed. But TurboTax does not automatically handle California FTB Form 568. This document has turned out to be daunting (it has a 60-something page booklet to accompany it). I've decided to take an extension and have a tax pro handle this. But I need to make sure I get the amount correct, as any amount owed has to be paid on-time in order to avoid penalties. Does this form alter/calculate my taxes paid (I have already paid the $800 annual fee, and my business made only 30k or so last year)? Or does TurboTax already have the calculation for state taxes correct, regardless of how Form 568 is filled out? I basically just need to make sure I pay the state the correct amount without having to fill out Form 568 until I get tax pro.
Submitted: 1 year ago.
Category: Tax
Expert:  Barbara replied 1 year ago.
Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.An LLC is subject to an annual tax of $800 in CA simply for the privilege of doing business in CA. In addition to the annual tax, every LLC must pay a fee if the total California annual income is equal to or greater than $250,000. TurboTax will generate Form 568. If it is associated with a Schedule C then you need to check the box on the CA Schedule C for "Single member LLC". A 568 will then be generated, pulling as much information from that Schedule C as is available, but you will still have to mail it in. Your personal CA state return can be efiled and is separate from the 568 for the LLC. let me know if you require further information or clarification.Thank you and best regards,Barb