California LLC and Form 568

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

Reply to
George Ferrer
Loading thread data ...

Yes.

Yes.

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

Reply to
Mark Bole

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.

Reply to
Stuart A. Bronstein

They will charge you or may charge you? Do you know how much it is?

Reply to
removeps-groups

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.

Reply to
Stuart A. Bronstein

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.

Reply to
Wallace

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.