Vijay Sharma wrote:

- quote -

That's right. You still report the income and expenses of
the SMLLC on Schedule C for California, but you file the 568
to cover the minimum tax and fee.

Katie in San Diego

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"Vijay Sharma" <SharmaV[at]Sutterhealth.org> wrote:

- quote -

LLC's aren't recognized for federal tax purposes. So you
treat it as the entity it is being taxed as.

Stu

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Thanks to both of you for replying. A follow up question -

For a single member LLC, Federal does not require any tax
filings for the business (Schedule C at the personal member
level) but California requires Form 568. Is this correct?


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Vijay Sharma wrote:

- quote -

Like a partnership would be the simplest way -- minimal
adjustments to make for tax purposes.

- quote -

An LLC (single or multiple member) files California Form 568
and pays the $800 minimum tax and the fee (which is zero
unless it the LLC's total income is more than $250,000). A
multiple member LLC completes Schedule K and K-1's for all
the members. An individual member of a multiple member LLC
reports the information from his or her K-1 on Schedule E of
the 1040 and shows any necessary California adjustments
(differences between the federal and California K-1's) on
Form 540, Schedule CA. A single member reports the income
and expenses of the LLC on Schedule C for both California
and federal purposes.

An S corporation files California Form 100S and pays the
corporate franchise tax on its California taxable income at
a reduced rate of 1.5%, but not less than the $800 minimum.
Each stockholder gets a K-1 and reports the income from it
on federal Schedule E and makes the California adjustments
on the 540-CA if necessary. A stockholder who provides
services to the corporation receives a salary which is
reported by the corporation on a W-2 and reported by the
stockholder as wage income.

Katie in San Diego

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Vijay Sharma wrote:

- quote -

For the books of the LLC, I simply substitute the word
"member" vice "partner".

ChEAr$,
Harlan Lunsford, EA n LA
Sun July 30, 2006

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For a LLC elected to be a taxed as a Partnership, is the
books (financial accounting) done like a Partnership or like
an S Corp or a different way?

As far as income tax is concerned, do LLCs and S Corps have
special California (State) tax filing requirements, i.e.
special tax forms to be prepared for LLC or S Corp or at a
personal level for such shareholders?

Thanks in advance for any input.

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