California LLC and Form 568


G

George Ferrer

In 2009 I formed a California Limited Liability Company (LLC). I did
not have any partners, employees, or make any profit.

In 2009 my LLC’s federal tax return was shown on a Schedule C. For the
California return I submitted the CA 540 form.

Now I’m being told that I should have submitted a California Form 568
along with my state tax return. I have the following questions:

1) Should a CA Form 568 have been submitted with my tax return? (I had
no employees, made no profit and had already paid the $800 LLC fee.)

2) If CA Form 568 should have been submitted and I didn’t at the time
I filed my 2009 return, could I submit this form now, several months
later?

3) Do I have to pay penalties for late submission of CA Form 568
(given my particular situation of no profits and no employees)?

Thank you in advance for your assistance.

George Ferero
 
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M

Mark Bole

In 2009 I formed a California Limited Liability Company (LLC). I did
not have any partners, employees, or make any profit.

In 2009 my LLC’s federal tax return was shown on a Schedule C. For the
California return I submitted the CA 540 form.

Now I’m being told that I should have submitted a California Form 568
along with my state tax return. I have the following questions:

1) Should a CA Form 568 have been submitted with my tax return? (I had
no employees, made no profit and had already paid the $800 LLC fee.)

Yes.


2) If CA Form 568 should have been submitted and I didn’t at the time
I filed my 2009 return, could I submit this form now, several months
later?
Yes.


3) Do I have to pay penalties for late submission of CA Form 568
(given my particular situation of no profits and no employees)?

Probably not, as the penalty would be based on the tax liability, and
you appear to have none (having already paid the $800 franchise fee).

CA LLC's have to pay LLC tax on gross receipts, even if there is no net
profit for income tax purposes.

FTB Publication 3556 is a summary, and the booklet for Form 568 has all
the gory details.

-Mark Bole
 
S

Stuart A. Bronstein

Mark Bole said:
Probably not, as the penalty would be based on the tax
liability, and you appear to have none (having already paid the
$800 franchise fee).
Even when no tax is actually due, if the return is late and the state
tried to collect money it thought was owed, they will charge
collection costs for their attempts to get money from you.
 
R

removeps-groups

Even when no tax is actually due, if the return is late and the state
tried to collect money it thought was owed, they will charge
collection costs for their attempts to get money from you.
They will charge you or may charge you? Do you know how much it is?
 
S

Stuart A. Bronstein

removeps-groups@yahoo.com said:
They will charge you or may charge you? Do you know how much it
is?
They charge what they consider their actual costs of collection. I
just saw one where there were four unsuccessful attempts at
collection. They charged about $15 for three of them and about $100
for the fourth.
 
W

Wallace

Mark Bole said:

Technically, the 568 is a tax return separate from your personal return, and
is not filed "with it" (i.e. as part of it). But yes, it should have been
filed.
 
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LLC Form 568 for California

I work for a Distribution Company that owns a single member LLC. the LLC owns the companies route vans and files unitary in CA so the LLC has no gross receipts the distribution company has them. How do I file the 568? The franchise LLC tax of $800 has already been paid. Any Help would make me so greatful.

Sean
 

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