Tax Book of Limited Liability Company 2019 | California 568 Forms and Instructions (2023)

Instructions for Form 568, 2019 Limited Liability Company Income Statement

References in this guide refer to the Internal Revenue Code (IRC).1 January 2015,und das California Revenue and Taxation Code (R&TC).

In general, California law for tax years beginning on or after January 1, 2015 is consistent with the Internal Revenue Code (IRC) dated January 1, 2015. However, differences between California and federal law remain. As California adapts to changes in federal tax laws, we do not always incorporate all changes made at the federal level. Access for more informationftb.ca.govand searchconformity. See the FTB Pub for more information. 1001, Supplemental Guidelines for California Adjustments, the California Schedule CA (540 or 540NR) Instructions, and Commercial Business Tax Booklets.

The instructions provided with the California tax forms are a summary of California tax law and are intended only to assist taxpayers in preparing their state tax returns. We've included the most useful information for most contributors in the limited space available. It is not possible to include all California Internal Revenue Code (R&TC) requirements in the guide. Taxpayers should not take the Instructions as governing law.

what's new

Closing Gap and Tax Relief Act for Small Businesses and Working Families of 2019 –The Tax Cuts and Employment Act (TCJA), enacted on December 22, 2017, amended the Internal Revenue Code (IRC). The California Revenue and Taxation Code does not account for all changes. Generally, for fiscal years beginning on or after January 1, 2019, California complies with the following provisions of the TCJA:

• California Achievement of a Better Life Experience (ABLE) Program
• Student loans terminated due to death or disability
• Prêmios der Federal Deposit Insurance Corporation (FDIC)
• Excess Employee Compensation

Exchange of the same kind –The TCJA amended Section 1031 of the IRC, which restricts the non-recognition of gains or losses in exchange for property held for productive use or investment. California complies with this amendment to the TCJA for exchanges initiated after January 10, 2019.

Technical termination of a company -For tax years beginning on or after January 1, 2019, California satisfies the TCJA termination of a partnership exemption for the sale or exchange of 50 percent or more of the aggregate interest in a partnership within a 12-month period.

A partnership may elect to apply the technical termination waiver for tax years beginning after December 31, 2017 and before January 1, 2019. Taxpayers opt into R&TC Section 17859(d)(1) by providing the Franchise Tax Board (FTB) with the following information:

1. Include a statement with your original or amended California tax return demonstrating the taxpayer's intent to make an election under Assembly Bill 91 R&TC Section 17859(d)(1).
2. Write “AB 91 – R&TC Section 17859(d)(1) Election” in black or blue ink at the top of the first page of the original or amended tax return.

3. Mail goes back to:

   FRANCHISE-FINANCE
   PO Box 1570
   RANCHO CORDOVA, CA 95741-1570

IRC Section 338 Election -For tax years beginning on or after July 1, 2019, California requires taxpayers to account for certain stock purchases that are treated as acquisitions of assets or deemed elections in which the acquiring company acquires assets of the company that Apply federal election treatment per IRC Section 338. If a taxpayer has not held an election under Section 338 of the IRC, the taxpayer may not hold a separate California state election.

Choice of accounting method for small business:For fiscal years beginning on or after January 1, 2019, California complies with certain provisions of the TCJA related to changes in accounting policies for small businesses.

A small business may elect to apply the same provisions above for tax years beginning on or after January 1, 2018 and before January 1, 2019. Taxpayers make the choice by providing FTB with the following information:

1. Include a statement with your original or amended California tax return that demonstrates the taxpayer's intent to choose a small business accounting method.
2. Write “AB 91 – Small Business Accounting Election Method” in black or blue ink at the top of the first page of the original or amended tax return.

3. Mail goes back to:

   FRANCHISE-FINANCE
   PO Box 942857
   SACRAMENTO, CA 94257-0500

Annual Return on Remittance Agents -For fiscal years beginning on or after January 1, 2020, a pass-through company that has paid or withheld tax on behalf of a non-resident owner must useForm 592-PTE, Forwarding Company Withholding Returnto report the total withholding. For more information, please use Form 592-PTE.

Proof of payment of transfer company withholding tax -For fiscal years beginning on or after January 1, 2020, an allocator must be usedForm 592-Q, Passing Entity Retention of Receiptto transfer held payments. Please refer to Form 592-Q for more information.

Military Pharmacy Unfolded -For tax years beginning on or after January 1, 2020 and before January 1, 2030, an LLC that is a small corporation wholly owned by a particular member of the United States Armed Forces is not subject to annual tax, if the owner is implemented during the fiscal year and the LLC operates at a loss or goes out of business.

Declaration on property tax deduction -As of January 1, 2020, the retention forms and instructions have been consolidated into a new oneForm 593, Real Estate Withholding Tax Return. Consult Model 593 for more information.

Credit Allocation -For fiscal years beginning on or after January 1, 2019, the following forms and instructions have been consolidated into a single formFTB 3544, Credit Assignment:

• FTB 3544, Election to Lending Within the Combined Reporting Group.
• FTB 3544A, List of Credits Received and/or Drawn by the Assignee.

General information

A. Important Information

LLC classified as Company File Form 568

LLCs can be classified as a partnership, corporation, or disregarded corporation for tax purposes. The LLC must file the appropriate California tax return for classification. LLCs classified as:

• Company File Template 568, Income Statement of a Limited Liability Company.
• Formula 100 General Corporation File, California Corporation Franchise or Income Tax Return.
• S Corporation files form 100S, California Corporation Franchise or Income Tax Return.
• Excluded companies, see General Information S, regulations to tick the boxes.

LLCs classified as partnerships mustNOFile Model 565, Corporate Income Tax Return.

The LLC will only file the Form 565 if there is an exception. For more information, see Exceptions in General Information D, Who Should Submit.

New company audit system -For federal purposes, the Bipartisan Budget Act of 2015 replaced the Fiscal Equity and Fiscal Responsibility Act of 1982, creating a centralized corporate auditing system and shifting responsibility for taxes owed generally to the corporation. All companies with tax years beginning after 2017 will be subject to this new rule unless an eligible company objects. For California purposes, for tax years beginning on or after January 1, 2018, any change or correction made by the Internal Revenue Service (IRS) must file the FTB for the revised year within six months of the date of any final Report federal determination and will generally be responsible for the tax due.

Deferred foreign income -Under Section 965 of the IRC, US shareholders of certain foreign corporations may be required to include certain deferred foreign income on their income tax returns. Californiait is notaccordingly. If you reported IRC 965 inclusions and deductions on Form 1065, US Corporate Income Statement, Schedule K for federal purposes, write “IRC 965” at the top of Form 568, US Corporate Income Tax Return. limited liability.

Anhang K-1 (1065-B)and its instructions - Public Law 114-74, Title XI, sec. 1101(b) repealed the election rules for large corporations for corporate tax years beginning after 2017. As a result, Schedule K-1 (Form 1065-B) and its instructions will become obsolete after 2017.

K-1 Paperless Schedule -Effective January 1, 2018, FTB has retired the Paperless Schedules K-1 (568) program due to increased support for our electronic business filing program. For more information on the California Electronic Business Enrollment Program, visitftb.ca.govand searchdead business.

Extension Expiry Date:For tax years beginning on or after January 1, 2017, the grace period for a limited liability company (LLC) classified as a partnership to file its income tax returns has been changed from six months to seven months. For more information, see General Information and when and where to apply.

Changing the return due date:For tax years beginning on or after January 1, 2016, the due date for an LLC classified as a partnership to file its tax return has changed to the 15th day of the 3rd month following the end of the tax year. See General Information for the return due date for a Single Member LLC (SMLLC) and when and where to file it.

Change of expiry date of the information statement:Effective January 1, 2016, the due date for filing a Form 592-F, Annual Membership or Foreign Member Statement, for a foreign (non-U.S.) member or retention member has been changed to the 15th of the third month after the end of the Year changed tax year of the partnership or LLC. The due date for filing Form 592-B, Resident and Non-Resident Withholding Tax Return, for each foreign (non-US) partner or member, changed to the 15th day of the third month after the end of the partnership's fiscal year or LLC. Request Form 592-F and Form 592-B for more information.

Penalty for Unregistered, Suspended, or Forfeited LLC:For tax years beginning January 1, 2013, the FTB will impose a $2,000 fine on an unauthorized foreign LLC conducting business within the state while not registered to conduct business within the state or during it is suspended or expired.

commercial electronic file -California law requires any business entity filing an original or amended tax return prepared with tax preparation software to submit its electronic tax return to the FTB. Access for more informationftb.ca.govand searchdead business.

online payment -LLCs can pay online with Web Pay for Business. LLCs can make an immediate payment or schedule payments up to a year in advance. Access for more informationftb.ca.gov/pagar.NOSubmit Form FTB 3588, Proof of Payment for Electronic Returns LLC.

Credit card -LLCs can use a Discover, MasterCard, Visa, or American Express card to pay corporate taxes. Gopagosoficiales.com. Official Payments Corporation charges a service fee for using this service. Do not fill out the FTB 3588 form.

Electronic Cash Withdrawal (EFW) -LLCs can make an annual tax, estimated fee, or renewal payment using tax preparation software. Check with your software vendor to see if they support EFW for annual taxes, estimated fees, or renewal payments.

Payments and credits applied to the usage fee –When an LLC includes use tax on its income tax return, payments and credits are applied to use tax first, and then to franchise or income tax, interest, and penalties. See W General Information, California Use Tax and Specific Instructions for more information.

Exchange of the same kind –For tax years beginning on or after January 1, 2014, California requires taxpayers exchanging California real estate for similar non-California real estate to file an annual information FTB under Section 1031 of the IRC. For more information, fill out Form FTB 3840, California Like-Kind Exchanges, or visit usftb.ca.govand searchTyp.

Commerce oder Business Prorateo.“Proportional trade or business” means a separate trade or business whose business income must be credited pro rata because it derives income from sources within that State and from sources outside of that State. A pro rata negotiation or agreement may take place in a number of ways, including but not limited to the following:

1. A company that makes a contribution.
2. A composite stakeholder group that contains at least one contributing member.
3. A non-unit division of a member of a hierarchical mixed group that includes at least one contributing member.
4. A partnership consisting in part, but not jointly, of (1) a Partner that is a Contributing Corporation, or (2) a member of a Combined Entries Group that includes at least one Contributing Member.
5. A non-unitary, disregarded entity with an owner that is either (1) a corporation that is a contributor, or (2) a member of a combined filing group that includes at least one contributor.
6. A sole proprietorship operated by a person who is not a California resident.
7. A business operated by one or more non-California residents.

See Appendix R, Revenue Sharing and Allocation for more information.

gross income -Section 25120 of the R&TC was amended to add the definition of gross receipts. See R&TC Section 25120(f) or see for a full definition of “gross income”.ftb.ca.govand search25120.

Unique selling factor formula:Section 25128.7 of the R&TC requires that all business revenue from a prorated industry or entity, except for an industry or entity that is prorated under Section 25128(b) of the R&TC, report its business revenue using the single factor of sales -Proportionate formula to California. For more information, see Appendix R or visitftb.ca.govand searchonly point of sale.

Market Allocation -Section 25136 of the R&TC requires all taxpayers to attribute sales, excluding sales of tangible personal property, using market attribution. For more information, see Appendix R or visitftb.ca.govand searchmarket allocation.

Make transactions -A taxpayer is engaged in business if he or she takes an active part in any transaction for the purpose of monetary or monetary gain or gain in California or whenanythe following conditions are met:

• The taxpayer is a California incorporated or resident corporation.
• California taxpayers' sales, as defined in Section 25120(e) or (f) of the R&TC, including sales made by taxpayers and independent contractors, exceed $601,967 or 25% of total sales tax, whichever is less.
• The California taxpayer's real estate and tangible assets exceed $60,197 or 25% of the taxpayer's total real estate and tangible assets, whichever is less.
• The amount paid in California by the taxpayer for compensation, as defined in Section 25120(c) of the R&TC, is greater than $60,197 or 25% of the total compensation paid by the taxpayer, whichever is less.

In determining the value of the taxpayer's sales, property, and payroll for business purposes, include the taxpayer's prorated portion of the amounts of the partnerships and S. These amounts are listed in the member's Appendix K-1 in Table 2, Part C.

Partnerships and LLCs are considered to be doing business in California if they have a general partner or member doing business in California on their behalf. In addition, General Partners and Members are deemed to be doing business in California if the partnership or LLC, as the case may be, is doing business in California. See R&TC section 23101 or see for more informationftb.ca.govand searchmake transactions.

Security Storage -With certain limited exceptions, payers who are required to withhold security deposits and remit to the IRS must also withhold and remit to the FTB California source income. If the beneficiary has withholding tax, the beneficiary must contact the FTB to provide a valid tax identification number (TIN) before filing the tax return. Failure to provide a valid TIN may result in withholding credit being denied. Access for more informationftb.ca.govand searchsafety handle.

Suspension/Expiration -LLCs are suspended or forfeited for non-registration or non-payment. See General Information V, Suspension/Forfeiture for more information.

Estimated Tax for LLC

The LLC must estimate the fee due for the year and pay the estimated fee by the 15th of the sixth month of the current tax year. LLCs use FTB 3536, LLC Fee Estimate to submit the fee estimate. A penalty will apply if the estimated LLC fee payment is less than the fee due for the year. The fine is equal to 10% of the LLC fees due for the year equal to the estimated timely fee payment. There will be no penalty if the estimated fee paid on the due date equals or exceeds the total LLC fee for the previous tax year.

The LLC Fee remains due and payable on the LLC Return Due Date. LLCs will use Form FTB 3536 to pay any LLC fee amounts due that have not been paid as timely estimated fee payment by the LLC due date. If the LLC tax year ends before the 15th day of the sixth month of the tax year, the estimated fee is not due and the LLC fee is due on the LLC Statement Due Date. See General Information F, Limited Liability Company Fees and Taxes for more information.

Taxa LLC

LLC fee is based on total California source earnings, not worldwide total earnings. For more information, seeAppendix IW, LLC Income Worksheet Instructions.

LLC series

An LLC series is a single LLC that has separate asset allocations, each within its own series. When filing Form FTB 3522, LLC Tax Return, write “LLC Series # ___” after each series name. Also write "Series LLC" in black or blue ink in the upper right corner of the receipt. Only first graders who are paying taxes or filing a declaration can use an SOS (California Secretary of State) file number. For all other series, enter zeros for the business identification number on the first receipt and we will assign a number and report each series. For more information, contact FTB 3556 LLC MEO, Limited.

Paid trainer license

An LLC can hire a paid preparer to discuss the tax return with the FTB. For more information, see General Information M, Subscriptions.

Business entity name and identification number

To expedite processing, be sure to use the business entity name as it appears with the California SOS and a valid California ID number.

Provide federal and California declarations

The FTB may request copies of federal or California statements that are subject to or related to a federal audit. Generally, the California statute of limitations is four years from the return due date or filing date, whichever is later. However, the law is extended in situations where an individual or entity is under scrutiny by the IRS. For more information on the extended statute of limitations due to the federal examination, see General Information J, Amended Statement.

FTB recommends that copies of statements and records supporting reported income, deductions, adjustments or credits be retained for at least as long as the statute of limitations dictates. However, some records need to be kept for much longer. For example, members must keep records to support their base in an LLC and LLCs must keep records to calculate their asset base.

Federal/State Disputes

For LLCs classified as partnerships, California tax law generally follows federal tax law in the area of ​​partnerships (IRC, Subchapter K: Partners and Partnerships). However, there are some differences:

The federal TCJA, sanctioned on December 22, 2017, made changes to the IRC. In general, the California R&TC does not adapt to the changes. California taxpayers are following IRC as of the specified date, January 1, 2015, with modifications. The following is a non-exhaustive list of changes to the TCJA:

• California does not meet the expanded ownership definition in Section 179 of the IRC for certain depreciable tangible personal property related to the provision of housing and for qualifying real estate improving non-residential real estate.
• California does not adhere to the deferral and exclusion of capital gains reinvested or invested in qualifying Opportunity Zone funds.
• California does not satisfy the exclusion of a patent, invention, model or design, and secret formula or process from the definition of a capital property.
• California does not follow the new federal deduction for qualifying business income from passing businesses under Section 199A of the IRC.
• California does not account for foreign nationals' gains or losses from the sale or exchange of shares in companies that trade or do business in the United States.
• California does not comply with the change in definition of significant corporate loss in the event of a transfer of interest.
• California does not adhere to charitable contributions and foreign taxes, which are considered in determining the partner's loss attribution limit.
• California does not comply with Section 951A of the IRC, which relates to low-tax intangible income.
• California does not comply with Section 965 of the IRC, which relates to the treatment of accrued foreign income.
• The amendment to Article 163(j) of the IRC, which limits the corporate interest deduction to 30%.

Other federal and state differences may arise for the following:

• California does not comply with qualified deferral of small business actions and profit exclusion under IRC section 1045 and IRC section 1202.
• Section 168(k) of IRC in relation to deduction for depreciation of certain assets.
• California does not meet the scope of the revenue constraint waiver on percentage depletion of production from marginal wells. The depletion percentage, which cannot exceed 65% of the taxpayer's taxable income, is capped at 100% of the net income from ownership of the oil or gas well.
• An annual tax of $800 generally applies to Limited Partnerships (LPs), LLCs, Limited Liability Partnerships (LLPs), and Real Estate Mortgage Investment Conduits (REMICs) that are partnerships or are classified as partnerships for tax purposes.
• Distributions to certain non-resident members are subject to California withholding taxes.
• Deductions for taxes paid to other states are not permitted.
• California follows federal law that requires corporations to use a mandatory tax year. However, California does not meet the federal payment requirement.
• California law has specific provisions regarding the distributed portion of taxable partnership income that may be allocated to California, with special distribution formulas for professional partnerships.
• California law changes the state definitions of unrealized debt and significantly valued inventory items.
• California has failed to comply with the Tax Equity and Fiscal Responsibility Act (TEFRA).
• California has not adopted the federal definition of small business as defined in Section 6231 of the IRC.

This list is not intended to include all federal and state differences. Visit the California R&TC for more information.

Company becoming a corporation -IRS Revenue Resolution 2009-15, which explains that in certain situations, a partnership that is converted into a corporation under Section 301.7701-3(c)(1)(i) or under a conversion statute without state law is eligible , an election effective for the corporation's first tax year.

LLC taxed like a corporation

If an LLC elects to pay taxes as a corporation for federal tax purposes, the LLC must file Form 100/100S/100-ES/100W, Form FTB 3539, and/or Form FTB 3586 and enter the California company number. , FEIN and California SOS File Number, if applicable, in the space provided. The FTB will (1) assign an identification number to an LLC registering as a corporation and (2) notify the LLC with the identification number upon receipt of the first estimated tax payment, tax payment or initial tax return. The LLC is subject to the applicable provisions of the Income Tax Act and is treated as a corporation for purposes of all instructions unless otherwise noted.

Converting to an LLC

A partnership (or other business entity) that becomes an LLC during the year must file two California filings. Even if the partners/members and business operations remain the same, the partnership must submit a Form 565 (or equivalent) by the beginning of the year on the date of the change. For the remainder of the year, the newly converted LLC must complete Form 568. See General Information I, Billing Cycles for further instructions.

California Disclosure Requirements

If the LLC is involved in a reportable transaction, including a publicly traded transaction, the LLC may have a disclosure requirement. Attach Federal Form 8886, Reportable Transaction Disclosure Statement, along with any other supporting enclosures, to the back of the California Declaration. If this is the first time the reportable transaction will be disclosed on the tax return, mail a copy of Federal Form 8886 to the following address:

Post

PRESENTATION OF TAX OWNERSHIP
ABS 389 MS F340
FRANCHISE-FINANCE
PO Box 1673
SAKRAMENT CA 95812-9900

The FTB may impose penalties if the LLC fails to file the Federal Form 8886, Federal Form 8918, Material Advisor Disclosure Statement, or other required information. A material advisor is required to provide a reportable transaction number to all taxpayers and material advisors for whom the material advisor acts as a material advisor.

Access for more informationftb.ca.govand searchduty of disclosure.

right claim

If the LLC is required by a claim to repay an amount that was included in income in a prior year, the LLC may deduct the amount repaid from its income for the year in which it was repaid. If the amount refunded by the LLC is more than $3,000, the LLC may receive a credit against your tax in the year it was refunded. See the Refunds section of Federal Publication 525, Taxable and Non-Taxable Income for more information.

California Tax Information on the Internet

You can download, view, and print California tax forms and publications atftb.ca.gov/formularios.

Federal tax information on the Internet

The IRS makes federal forms and publications available for download, viewing, and printing atirs.gov.

websites of the state authorities

Access other California Government websites atca.gov.

Joint Agency website

For more information on trade tax, seeimpuestos.ca.gov, gesponsert vom Board of Equalization (BOE), dem California Department of Tax and Fee Administration (CDTFA), dem Department of Employment Development (EDD), dem FTB und dem IRS.

B Introduction

LLCs combine traditional corporate and partnership skills. LLC Members enjoy all of the following benefits:

• Limited Liability whereby the extent of a Member's liability is limited to the Member's investment.
• Flexible management alternatives.
• Qualification Requirements for Liberal Members.

LLCs that are classified as partnerships for tax purposes generally determine their California income, deductions and credits under the Personal Income Tax Act. You are subject to an annual tax and LLC fee based on total California income. For more information please refer to the General Information F, Limited Liability Company Taxes and Charges and the instructions in Schedule IW, which accompany this booklet.

LLCs organized in California have all the rights and authority enjoyed by an individual to conduct business. However, California law does not permit the formation or registration of LLCs (domestic or foreign) in California to perform any type of professional service that requires a license, certification or registration under the Business and Professions Code or the Chiropractic Act exception insurance agents and brokers.

California law requires LLCs that are not organized in the state of California to register with California SOS before beginning a state business in California. The laws of the state or foreign country in which the LLC is organized generally govern the internal affairs of the LLC. California SOS cannot deny recognition of an LLC because the laws of the organization's home state or foreign country differ from California laws, except for professional services LLCs, which may not register as an LLC in California.

For more information on organizing and registering an LLC, contact:

Post:

COMMERCIAL COMPANIES SECTION
CALIFORNIA FOREIGN SECRETARY
PO Box 944228
SACRAMENTO CA 94244-2280 See more

Telephone:

916-657-5448

or go tosos.ca.gov.

C purpose

Use Form 568 to:

• Determine the LLC fee amount (including the disregarded entity fee) based on total California sales.
• Enter the LLC fee.
• Report the annual tax.
• Declare and pay all taxes of non-resident members who do not consent.
• Report income, deductions, gains, losses, etc. for the operation of a multi-member LLC that has elected to be classified as a partnership.

Use Form 568 as a tax return for calendar year 2019 or any tax year beginning in 2019.

D. Who should submit

An LLC can be classified as a partnership, corporation, or disregarded corporation for tax purposes. The LLC must file the appropriate California statement.

Form 568 must be completed by any LLC that is not taxed as a corporation if any of the following are true:

• The LLC operates in California.
• The LLC is organized in California.
• The LLC is organized in another state or foreign country but registered with California SOS.
• The LLC has California source income (unregistered foreign LLCs, see Exceptions to Form 568 below).

An LLC does not have to file a tax return and is not subject to annual tax or LLC fee if the following conditions are met:

• The LLC's tax year is 15 days or less.
• The LLC did not conduct any business in the state during the 15-day period.

Record

LLCs incorporated in California must file incorporation deeds with California SOS before doing business in that state.

LLCs formed under the laws of another state or foreign country must register with California SOS before conducting domestic business in California.

Unregistered foreign LLCs that are members of an LLC doing business in California or general partners of a limited partnership doing business in California are deemed to be doing business in California.

Regardless of where the LLC's primary business or trade is conducted, an LLC is deemed to be doing business in California if any of its directors, officers or other agents conduct business in California on behalf of the LLC.

Exceptions to completing Form 568:

• The LLC has elected to be taxed as a corporation for federal tax purposes.
• The LLC is a single member limited liability company (SMLLC) that was treated as a taxable partnership as a corporation for California tax purposes prior to January 1, 1997 and has not elected to change that tax treatment for the current tax year.
• Unregistered (i.e., not organized in California) foreign LLCs (excluding disregarded corporations/individual member LLCs) that do not conduct business but generate income in California or report an election on behalf of a California resident of California, file instead the form 565 a form 568.
• An individual member, an unregistered (i.e., not organized in California) foreign LLC that is deemed ignored and does not conduct business in California is not required to file a Form 565 or Form 568.

LLCs classified as General Corporate File Form 100, California Corporate Franchise or Income Tax Return. LLCs classified as S Corporation Filing Form 100S, California S Corporation Franchise or Income Tax Return. For LLCs classified as Disregarded Entities, see General Information S, Check Box Rules.

The LLC is still required to file a Form 568 if the LLC is incorporated in California even if both of the following conditions are true:

• The LLC does not actively conduct business in California.
• The LLC has no California source income.

The LLC filing requirement is met as follows:

1. Complete Form 568 with any additional schedules.
2. Complete and attach the California K-1 Schedule (568) for members residing in California.
3. Write “SB 1106 Filing” in black or blue ink at the top of Form 568, page 1.
4. Enter the total number of members in Question K on page 2 of Form 568.

Certain publicly traded companies that are treated as a company under Section 7704 of the IRC are required to file a Form 100.

A resident member of a foreign LLC taxed as a partnership who is not required to file Form 568 may be required to file a copy of Federal Form 1065, U.S. Partnership Income Statement, to demonstrate the member's interest in LLC income or loss.

E. When and where to apply

An LLC must file Form 568, pay taxes from non-consenting nonresident members, and pay any LLC fee amounts due not paid as an estimated fee on Form FTB 3536 by the LLC Statement Due Date.

For LLCs classified as partnerships, the original return deadline is the 15th day of the third month after the end of the financial year.

SMLLC

• For SMLLC owned by pass-through entities (S corporations, partnerships and LLCs classified as partnerships), the original return due date is the 15th day of the third month after the fiscal year end.
• For all other SMLLCs, the original return due date is the 15th day of the 4th month following the end of the owner's tax year.

See R&TC Section 18633.5 for more information.

If the due date falls on a weekend or holiday, the deadline for submission and payment is extended to the next business day without penalty.

extensions

California does not require written renewal requests. All LLCs in good standing classified as partnerships have an automatic seven month deadline to file the application. If the LLC is unable to file its Form 568 by the return due date, the LLC will receive an automatic seven-month extension unless the LLC is suspended or forfeited.

SMLLCs that are disregarded for tax purposes follow the owner's original due date and have a six-month extension.

However, auto-renewal does not extend the deadline for paying LLC fee or non-resident member tax without consent.

If the LLC files the extension statement, please refer to Form FTB 3537, LLC Automatic Extension Payment included with this brochure to file the required payments.

PAID

• Mailformular 568 compayA:

  Post

  FRANCHISE-FINANCE
  PO Box 942857
  SAKRAMENT CA 94257-0501

• Electronic Returns: Pay electronically with Web Pay, credit card, EFW, or FTB Mail Form 3588, LLC Electronic Returns Payment Proof, withpayA:

  Post

  FRANCHISE-FINANCE
  PO Box 942857
  SAKRAMENT CA 94257-0531

In black or blue ink, make out a check or money order made payable to “Franchise Board of DirectorsWrite the LLC's SOS California File Number, FEIN, and "2019 Form 568" on the check or money order.

Use:The California SOS file number has 12 digits.

Make all checks or money orders payable in US dollars and drawn on a US financial institution.

NOInclude a copy of the return with payment of the balance due if the LLC has already filed a return for the same tax year.

REFUNDS

• Mail Form 568 requesting arefundA:

  Post

  FRANCHISE-FINANCE
  PO Box 942857
  SAKRAMENT CA 94257-0500

RETURN UNPAID OR PAID ELECTRONICALLY

• Mailformular 568free of charge or paid for electronicallyA:

  Post

  FRANCHISE-FINANCE
  PO Box 942857
  SAKRAMENT CA 94257-0500

Electronic withdrawal of funds

LLCs can make an annual tax, estimated fee, or renewal payment using tax preparation software. Check with your software vendor to see if they support EFW for annual taxes, estimated fees, or renewal payments.

Annual tax on limited liability companies

If the annual tax of $800 for 2019 has not been paid by the 15th day of the 4th month after the start of the tax year (tax year) or April 15, 2019 (calendar year), the tax must be filed using FTB Form 3522 as soon as possible as possible. (NOuse Form 2020 FTB 3522 included with this brochure).

If the LLC's tax year is 15 days or less and it does not conduct business in the state during the 15-day period, see the instructions for Form 568 filing exceptions under General Information D, Who Must File, in this booklet.

See also General Information G, Penalties and Interest, for the additional amount you now have to pay. To ensure the proper application of the tax payment to the LLC account,NOFile the $800 annual tax on Form 568.

The 2020 annual tax of $800 is due on the 15th day of the fourth month thereafterStartFiscal year 2020 (fiscal year) or April 15, 2019 (calendar year). Payment is made using FTB form 3522.Do not submit the $800 annual tax on Form 568. If the due date falls on a weekend or holiday, the deadline for submission and payment is extended to the next business day without penalty.

For newly incorporated LLCs, the annual tax payment of $800 is due and payable on the 15th day of the fourth month after the LLC's registration with California SOS, not the date on which it begins operations. Each part of a month from the reference date counts as a whole month for the calculation of the annual tax due.

Example:LLC1, a newly formed LLC, is organized as an LLC and registered with California SOS on June 15, 2019. LLC1 will commence operations in California on August 15, 2019. Since LLC1 was incorporated in June 2019, the LLC's annual tax is due on September January 15th, 2019 (15th of the fourth month). LLC1's annual tax payment for tax year 2020 is due on April 15, 2020. If LLC1 elects a tax year (June 1, 2020 through May 31, 2021), the annual tax payment for the 2020 tax year is due September 15, 2020. The annual tax payment is due on Form FTB 3522.

private delivery services

California law conforms to the federal law on the use of certain designated private delivery services to comply with the “timely delivery as a deposit/timely payment” rule for tax returns and payments. See Federal Form 1065 instructions for a list of designated delivery services. If using a private delivery service, send the return to:

Post

FRANCHISE-FINANCE
Sacramento CA 95827

Cautious:Private delivery services cannot deliver items to PO Boxes. If you use one of these services to send articles to the FTB,NOUse an FTB mailbox.

F. Limited Liability Company Taxes and Fees

The definition of a limited liability company has been revised to exclude certain corporations that are exempt from tax provided they are treated as disregarded partnerships or corporations for tax purposes. As such, they are not responsible for the annual LLC fee and taxes.

Record all types of payments (prior year overpayment, annual tax, collection, etc.) for the 2019 tax year on the appropriate line of Form 568.

Annual tax on limited liability companies

LLCs are subject to an annual tax of $800 if they do business in California or accept articles of incorporation or a certificate of registration issued by California SOS. Annual tax is prepaid for the privilege of doing business in California and is due and payable by the 15th of the fourth month thereafterStartof the financial year. The annual tax is to be paid in each financial year until the relevant documents have been submitted. For more information, see General Information Q, Termination of a Limited Liability Partnership.

Use Form FTB 3522 to submit an annual payment of $800. Write a check or money order in black or blue ink payable to Conselho Fiscal de Franchise. Write the LLC's California SOS File Number, FEIN, and "2020 FTB 3522" on the check or money order.

If the 15th day of the fourth month of an existing foreign LLC's tax year has passed before the existing foreign LLC commences operations in California or registers with California SOS, the annual tax must be paid immediately upon commencement of operations or registration with California SOS.

Limited Liability Company Fee

In addition to the annual tax, each LLC must pay a tax if the total annual California income is $250,000 or more. See the Schedule IW instructions included with this booklet for more information.

The LLC must estimate the fee due for the year and pay the estimated fee by the 15th of the sixth month of the current tax year. LLCs use FTB Form 3536 to submit the fee estimate. A penalty will apply if the estimated LLC fee payment is less than the fee due for the year. The fine is equal to 10% of the LLC fees due for the year equal to the estimated timely fee payment. There will be no penalty if the estimated fee paid on the due date equals or exceeds the total LLC fee for the previous tax year.

The LLC Fee remains due and payable on the LLC Return Due Date. LLCs will use Form FTB 3536 to pay any LLC fee amounts due that have not been paid as timely estimated fee payment by the LLC due date. If the LLC tax year ends before the 15th day of the sixth month of the tax year, the estimated fee is not due and the LLC fee is due on the LLC Statement Due Date. Use the table below to calculate the rate:

If you have combined California income of $250,000 or more, you must report a charge.

To determine the LLC rate, refer to the row instructions specific to row 1.

If the FTB determines that multiple LLCs were formed primarily for the purpose of reducing fees, the LLC's total income from all sources that must be reported to California may include the aggregated total income of all jointly controlled LLC members. "Co-controlled" means control of more than 50% of the share capital or profits of the taxpayer and another corporation or partnership by the same persons.

LLC series

If the laws of the state in which the LLC is incorporated provide for the designation of a series of shares (e.g., a Delaware LLC series) and: (1) the holders of the shares in each series are limited to the assets of that series series upon redemption, liquidation or termination and may share only the proceeds of that tranche, and (2) under home state law, the payment of costs, fees and liabilities of each tranche is limited to the assets of that tranche, so each tranche in an LLC Series is considered a separate LLC and must file its own Form 568 and pay its own separate LLC tax and annual fee if incorporated or doing business in California.

Tax for non-resident non-resident members

All non-resident members must sign Form FTB 3832, Non-resident Member Limited Liability Company Consent Form. The LLC will return the signed Form 568 form. If a non-resident member does not sign Form FTB 3832, the LLC must tax the distributing portion of that member's income at the higher marginal rate. Any amount paid by the LLC will be considered a payment by the non-resident member.

The tax may be reduced by the amount of tax previously withheld and paid by the LLC in respect of each non-resident member who does not consent.

Memory:All nonresident members must file a California tax return. Completing Form FTB 3832 does not satisfy the registration requirements for non-California residents. Corporate Members are also considered to be doing business in California and may have additional registration requirements. Visit the FTB Pub for more information. 1060, a guide for companies doing business in California. Non-residents may be eligible to file a Group 540NR, Non-California Resident or Partial Resident Tax Return and must FTB Pub. 1067, Guidelines for Submitting a Group Form 540NR.

If the LLC statement is filed on or before the due date of the original statement, the LLC will complete Schedule T, Non-Resident Non-Resident Member Tax Responsibility (NCNR). See Appendix T Specific Instructions in this leaflet for more information.

If the LLC owes NCNR taxes and you cannot complete Form 568 on or before the original due date, complete Form FTB 3537. For more information on when the NCNR member tax is due with the voucher, see Form FTB 3537.

G. Penalties and Interest

Failure to Meet Archiving Requirements

Unless the failure is due to a reasonable cause, a penalty will be imposed if the LLC is required to file a Form 568 and any of the following is true:

• LLC does not timely file returns, including renewals.
• LLC files a statement that includes Exhibit K-1(568) which does not contain all required information.

The penalty amount for each month or part of a month (up to a maximum of twelve months) that the delay continues is $18 multiplied by the total number of LLC members during any part of the tax year for which the refund is due. Interest is calculated on the fine from the date the tax payment notice was sent until the date the tax return was filed.

For “small partnerships” as defined in Section 6231 of the IRC, the federal exception imposing penalties for failure to file partnership statements does not apply for California purposes. See R&TC section 19172 for more information.

Failure to submit the declaration in a timely manner

Any LLC that fails to file the Form 568 on or before the extended due date will incur a penalty. The penalty is 5% of unpaid tax (including LLC fee and non-resident member tax without consent) for each month or part of a month that the tax return is not filed from the filing date. Expiry of the declaration until its submission. The fine cannot exceed 25% of the unpaid tax. If an LLC fails to file its statement by the extended due date, the automatic renewal will not apply and the late filing penalty will be assessed from the due date of the original statement. See R&TC Section 19131 for more information.

non-payment on the due date

The non-payment penalty will be applied from the declaration due date or the payment due date. Because any LLC fee amount owed that is not paid as payment of the estimated fee and nonresident non-consenting member tax become due with the declaration, the penalty will be calculated from the original due date of the declaration. The annual tax payment date is the 15th day of the 4th month of the tax year, therefore the fine is calculated from this date. The penalty for each item is calculated separately.

The penalty for non-payment starts at 5%. Each month or fraction of the unpaid penalty increases by 0.5%. The fine will continue to increase for 40 months, reaching a maximum of 25%. See R&TC Section 19132 for more information.

If an LLC is subject to both the penalty for failing to file a tax return on time and the penalty for not paying full tax by the due date, a combination of the two penalties may apply, but the total penalty cannot exceed 25%. unpaid tax. However, the fine for non-compliance with the tax obligation is imposed in addition to the fine for not filing the tax return on time and the fine for not paying the tax in full by the due date. FTB can waive the penalty for good cause. Good cause is presumed if 90% of the tax is paid by the original filing date.

If the LLC pays less than the estimated fee, a 10% penalty will be added to the fee. The amount of the underpayment corresponds to the difference between the total fee amount due in the financial year less the amount paid on the due date. There will be no penalty if the estimated fee paid on the due date equals or exceeds the total LLC fee for the previous tax year.

Interest

Interest is due and payable on any tax due if not paid by the original due date. Interest is also payable on some fines. The automatic extension of the deadline for submitting the declaration does not prevent interest from being paid. California follows federal rules for calculating interest. Get the FTB post. 1138, Business Billing/Reimbursement Information, for more information.

Other Penalties/Fees

A fine may also be imposed if a payment is returned for lack of funds. In addition, fees for collection costs may apply.

H. Accounting Policies

Calculate ordinary profit or loss based on the accounting policy regularly used to maintain the LLC's books and records. This method must clearly reflect the LLC's income or loss.

LLCs that have been granted permission to change their accounting policy for federal purposes should refer to Section 481 of the IRC for information on the adjustments required by the accounting policy changes.

In general, an LLC cannot use the cash accounting method if the LLC has a corporate member, has an average annual gross income greater than $5 million, or is a tax haven. See section 448 of IRC for exceptions.

The market value method is prescribed for securities dealers. The IRC section 481 adjustment is accrued pro rata for five years from the first year of income.

I. Accounting Periods

LLC statements must generally be filed for a billing cycle that spans the full 12 months. A Short Term Statement must be filed if the LLC is incorporated or terminated within the tax year. If so, write “Short Term” in black or blue ink at the top of Form 568, page 1.

Refer to the Federal Form 1065 Instructions for the required tax year for a partnership, which also applies to LLCs.

J. Amended Statement

If, after filing its statement, the LLC recognizes the changes it needs to make, the LLC may be required to file an amended Form 568 and Schedule K-1 (568) for each member. Check the “Return Modified” box in Item H(3) of Form 568, Page 1. Please submit an amended Exhibit K-1(568) with box G(2) checked and mark each affected member as “Amended”. If the LLC originally filed a non-resident group member affidavit on Form 540NR, the LLC must file an amended Form 540NR.

Include a statement detailing the line number of each changed item, the corrected quantity or handling of the item, and an explanation of the reasons for each change.

If the LLC's state rate of return is changed for any reason, the state change may affect the LLC's California rate of return. This also includes changes made as a result of an audit. The LLC must file an amended statement within six months of the federal determination as to whether the LLC fee or tax owed by a member is affected. The LLC must enclose a copy of the IRS report or other notice of the adjustments with the statement. The LLC must advise members that they, too, may be required to file amended statements within six months of the date of the final federal decision.

K. Return of Required Information

Every LLC is required to file information statements if any of the following events occur in the course of its trade or business:

• The LLC pays an individual a fixed or determinable rent, wages, salaries, pensions or other income during a calendar year totaling $600 or more.
• The LLC pays interest and dividends to an individual or beneficiary totaling $10 or more during a calendar year.
• The LLC receives cash payments in excess of $10,000.

Payments of any amount made through a broker, dealer or exchange agent must also be reported.

LLCs must report payments to California residents by providing copies of Federal Form 1099 (series). For nonresidents, see reporting and withholding requirements on Form 592, Resident and Non-Resident Withholding Statement; Model 592-B Resident and Non-Resident Withholding Tax Return and Model 592-F Annual or Foreign Membership Declaration. Get the FTB post. 1017, Withholding Tax Guidelines for Residents and Non-Residents, for more information.

LLCs must file a copy of Federal Form 8300, Reporting Cash Payments Over $10,000 Received in a Transaction or Business, within 15 days of the transaction date.

LLCs are required to report interest paid on municipal bonds issued by a state other than California or a municipality other than a California municipality held by California taxpayers. Corporations that pay California taxpayers interest on these types of bonds must report interest payments of at least $10 paid after January 1, 2019. Information statements are due June 1, 2020. Please see the FTB 4800 MEO, Payment of Interest and Dividend Reporting Request Letter for more information.

LLCs must use FTB 3834, Calculation of Retrospective Interest for Entered Long-Term Contracts to report interest due or payable retrospectively for long-term contracts. If you are filing FTB 3834 to calculate interest due or repaid using the look-back method, enclose a copy of FTB 3834 with Form 568.

All disclosures required for federal purposes in IRC sections 6038, 6038A, 6038B, and 6038D are also required for California purposes. Include information statements with Form 568 when they are submitted. Failure to provide information statements may result in penalties under R&TC Sections 19141.2 and 19141.5.

All returns of information should be submitted separately from Form 568 unless otherwise noted. Returns of information must be sent to the following address:

Post

FRANCHISE-FINANCE
PO Box 942857
SAKRAMENT CA 94257-0500

L. Special item

California LLC tax law generally follows federal tax law for LLCs classified as corporations in all of the following areas:

• IRC Section 702(a) Article
• Elections
• Distributions of accounts receivable and unrealized inventories
• Membership Relations with the LLC
• Contributions to the LLC
• Nonresident Foreign Partners' Withholding Income, Form 592-A, Form 592-B, and Form 592-F
• Basic and risk rules
• Passive Activity Restrictions
• LLC Member Net Operating Loss Deduction (an LLC is not permitted the deduction)
• public companies
• long-term contracts
• term sale
• vacation pay
• Amortization of past service cost
• Distributions from Property Contributed by an LLC
• Recognition of pre-tax profits on certain LLC distributions to members

Refer to the Federal Form 1065 instructions for specific information about these areas.

M. Firmas

Form 568 is not considered a valid declaration unless signed by an authorized member or manager of the LLC. If a trustee, receiver, or assignee controls the organization's property or business, that person must sign the declaration.

Please provide the phone number and email address of an authorized member or manager in the event FTB needs to contact the LLC to obtain the information needed to process this return. By providing this information, FTB can process the return faster or issue a refund.

Paid Coach Information

Anyone being paid to prepare the LLC statement must sign the statement and complete the “Paid Preparer Use Only” section of the statement.

All of the following must be completed by the paid creator:

• Enter the required creator information. Tax preparers must provide their tax preparer identification number (PTIN).
• Sign in the space provided for the creator's signature.
• Provide the LLC with a copy of the statement in addition to the copy to be filed with the FTB.

A person who prepares the return and does not charge the LLC may not sign the LLC statement.

Paid trainer license

If the LLC would like to allow the paid preparer to verify their 2019 Form 568 with the FTB, check the “Yes” box in the signature portion of the statement. This authorization applies only to the person whose signature appears in the “For Use by Paid Creators Only” section of the statement. It does not apply to the signature, if any, displayed in this section.

If the “Yes” box is checked, the LLC will authorize the FTB to call the paid builder to answer any questions that may arise during the processing of your return. The LLC also authorizes the paid creator to:

• Provide the FTB with any information that is missing from the declaration.
• Please call FTB to inquire about the processing of returns or the status of any related refunds or payments.
• Respond to specific FTB communications on calculation errors, offsets and return preparation.

The LLC does not authorize the paid creator to collect refund checks, bind the LLC to anything (including additional tax obligations), or represent the LLC before the FTB.

Eligibility ends automatically by the expiration date (regardless of extensions) to file the LLC's 2020 tax return. If the LLC would like to renew the paid creator permission, go toftb.ca.gov/poa. If the LLC wishes to revoke the authorization prior to expiration, notify the FTB in writing or call 800-852-5711.

N. Group Returns

Returns from non-resident groups

Nonresident members of an LLC doing business in California or receiving income from California sources may elect to file a nonresident group statement (R&TC Section 18535).

• The return of a group of non-residents may involve fewer than two non-residents.
• Non-residents with more than $1,000,000 in California taxable income are eligible for inclusion on non-resident group returns.
• An additional 1% tax applies to California residents and non-residents with taxable income greater than $1,000,000.

Get the FTB post. 1067, Guidelines for Completing a Group Form 540NR, for more information.

O. Investment companies

Income of non-resident members, including banks and corporations, derived from “qualifying investments” of an LLC that qualifies as an “investment trust” is considered non-California source income, unless otherwise noted. Non-resident individuals or foreign members are generally not subject to tax. on this income. The LLC must notify its non-resident individuals or foreign shareholders as to whether its distributing portion of income derives in whole or in part from "qualifying investments" of a "mutual fund" and if it originates in California. See the instructions to Question L of this booklet for definitions of “mutual funds” and “qualifying investment securities”.

However, income from an LLC that is an investment company (LLC investment company) generally qualifies as business income for purposes of credit (see Marion Markus Estate Appeal, Cal. St. Bd. of Equal., May 6, 1986). LLC mutual funds doing business in and outside of California are required to distribute California source income in accordance with the California R-Schedule. LLC investment trusts doing business solely in California must treat all LLC investment trust trading income as California source income.

Investment Partnership LLCs that have California source income are required to report each member's distributing portion of the California source income in Exhibit K-1(568), column (e).

Non-resident members generally do not report this income as a California source of income. However, there are two exceptions to the general rule when a non-resident may have a California source of income from an LLC investment company. Individual non-resident members will be taxed on their shares distributing income from the "LLC Mutual Fund" if the income from qualifying investments is related to any of the following:

• Any other commercial activity of the non-resident partner.
• Any other legal entity in which the non-resident member has an interest that is separate and separate from the partnership's investment activity and that is conducted in California.

Nonresident individual members are taxed on their distributing portion of an LLC mutual fund's investment income if the qualifying securities are acquired with working capital of an industry or corporation in which the nonresident has an interest and is held in California (R&TC Section 17955). .

Corporations that are members of an LLC investment partnership are generally not taxed on their distributing portion of the LLC's income so long as the LLC's income is the corporation's sole source of income in California. However, the corporation will pay tax on its distributing portion of the California LLC's source income if any of the following are true:

• The company participates in the management of investment activity of LLC investment company.
• The Company has income that is derived from or attributable to sources within that state, excluding income from LLC investment trusts.

P. Non-Resident Members

A multi-member LLC must complete Form FTB 3832 with Form 568 if one or more of its members are non-California residents. Form FTB 3832 is signed by non-resident individuals and members of foreign corporations to show their consent to California jurisdiction for taxation of their distributed portion of income attributable to California sources.

Submit Form FTB 3832 for any of the following:

• The first taxable period for which the LLC with non-resident members became taxable.
• Any taxable period during which the LLC had a non-resident member who did not sign an FTB Form 3832.

Separate forms are acceptable for an individual (or groups of individuals). The LLC must maintain and make available for verification an FTB 3832 signed by each nonresident member.

The LLC must pay taxes for each non-resident member who has not signed a Form FTB 3832. See General Information F, Limited Liability Company Fees and Taxes for more information.

The tax may be reduced by the amount of tax previously withheld and paid by the LLC in respect of each non-resident member who does not consent.

If the LLC fails to pay the non-resident member tax on time, penalties and interest will be imposed on the LLC (R&TC Sections 19132 and 19101). Any amount paid by the LLC on behalf of a nonresident person or a member of a foreign entity will be deemed a payment by the member.

An LLC can recover from the non-resident member the tax it paid on behalf of the non-resident member.

To claim the tax credit, the non-resident member must include a copy of Schedule K-1 (568) on their California tax return.

Nonresidents or Part-time Residents

Non-residents pay California taxes only on their California taxable income. For more information, see FTB Pub. 1100, Taxation of Non-Residents and Movers.

CAUTIOUS:The requirements and procedures outlined above are unrelated to the non-resident withholding requirements discussed in General Information R, Withholding Requirements.

F. Dissolution of a Limited Partnership

Generally, LLCs must pay $800 in annual taxes and file a California declaration until the proper documents are filed. To terminate an LLC, the following steps must be taken:

1. File a timely California Final Declaration (Form 568) with the FTB and pay the annual tax of $800 for the most recent tax year.
2. Complete Form LLC-4/7, Certificate of Cancellation with California SOS. California SOS also requires that a domestic LLC file Form LLC-3, Certificate of Dissolution. Contact California SOS for details.

Effective date of Form LLC-4/7 will cease collection of the $800 annual tax for future tax years. If Form LLC-4/7 is filed after the tax year end date, a tax return for the following year and an additional $800 in tax may be required.

The annual tax will not be charged if the LLC meets all of the following requirements:

• The LLC files in a timely mannerFinaleLimited liability company income tax return for the previous financial year, including rollovers.
• The LLC ceased operations in California after the last fiscal year.
• LLC will submit applicable cancellation documentation to California SOS within 12 months of timely submissionFinaleLimited Liability Company Income Refund.

Short form cancellation

California domestic LLCs may file a Limited Liability Partnership Form LLC-4/8, Short Form Cancellation Certificate if the following requirements are met:

• Form LLC-4/8 is filed within 12 months from the date the articles of association were filed with SOS.
• The domestic LLC has no debt or other obligations (other than tax obligations).
• Known assets were distributed to beneficiaries or known assets were not acquired.
• The final tax return or a final annual tax return has been or will be submitted to the FTB.
• The domestic LLC has not transacted any business since the time the articles of incorporation were filed.
• A majority of the directors or partners, or if there are no directors or partners, the person or majority of persons who signed the articles of incorporation voted to dissolve the domestic LLC.
• If the domestic LLC received interest payments from investors, those payments were returned to those investors.

LLC must file form SOS LLC-4/8 with SOS. The LLC must include a statement that all of the above has been completed before California SOS terminates the LLC. If available, attach an endorsed, submitted SOS copy of Form LLC-4/8 to the first tax return.

For more information on canceling your LLC, contact:

Where to submit:Completed forms, along with any applicable fees, may be sent to the following address:

By post:

CALIFORNIA FOREIGN SECRETARY
COMMERCIAL ESTABLISHMENTS REGISTRATION AUTHORITY
PO Box 944260
SAKRAMENT CA 94244-2600

or hand delivery (return) to the Sacramento office:

Personal:

CALIFORNIA FOREIGN SECRETARY
COMMERCIAL ESTABLISHMENTS REGISTRATION AUTHORITY
RUA 11, 1500, 3. STOCK
Sacramento CA 95814

This form is submitted to the Sacramento office only.

By phone:

916-657-5448

The opening times are from Monday to Friday from 8 a.m. to 8 p.m. M. at 5 p.m.

Website-Web:

sos.ca.gov

If the LLC is being terminated to convert to another type of business entity, be sure to file the appropriate forms with California SOS.

Get the FTB post. 1038, Guide to Dissolving, Resigning, or Terminating a California Business Entity, for more information.

Short term profitability

If the LLC files a 2020 Short Term Return and the 2020 forms are not available, the LLC must use the 2019 Form 568 and change the tax year.

A. Retention Obligations

Nonresident Foreign Members (Non-US)

As described in Section 1446 of the IRC and as amended by Section 18666 of the R&TC, if an LLC has income or profits from a California trade or business and if a portion of such income or profits is attributable to a foreign national under Section 704 IRC (outside the US). ) non-resident member, the LLC is required to withhold tax on the attributable amount.

State and Federal Disputes Relating to Non-Resident Foreign (Non-US) Members

California generally complies with Section 1446 of the IRC and applicable federal decisions and procedures. The main differences between California and state laws in this area are:

1. California's retention rate is 8.84% for C corporations and 12.3% for individuals, partnerships, limited liability companies and directors.
2. Income attributable to the disposal of real estate in California is subject to withholding under Section 18662 of the R&TC.

Nonresident National Members (US)

An LLC is required to withhold income tax or franchise monies if it distributes income to a non-resident national (US) member (R&TC Section 18662). This includes income from prior years that should have been reported as California source income on the member's California tax return but was not previously reported. However, no withholding is required if the member's California source income distributions during the calendar year are $1,500 or less or if the FTB directs the payer not to withhold.

Non-US Resident Members include individuals who are not California residents and companies that are not qualified to do business in California or do not have a permanent place of business in California. Non-resident household members also include non-resident real estate, trusts, partnerships, and LLCs that do not have a permanent place of business in California. Nonresident foreign members who fall under Section 18666 of the R&TC are not nonresident national members.

Limited liability companies with income both inside and outside of California must make a reasonable estimate of the ratio applicable to distributions, which is the ratio of California source income to total income. The prior year's portion is generally accepted as reasonable in determining the California portion of the distribution that is subject to withholding. LLCs are required to withhold taxes at a rate of 7% on distributions (including property) of California source income to non-resident household members. See Appendix R for more information.

FTB has the authority to permit reduced retention quotas, including waivers, upon written request. These authorizations can be granted once, annually or for a longer period of time. Exemptions or reduced withholding rates are generally permitted when making distributions from publicly traded companies and distributions to brokerage firms, tax-exempt organizations and Tiered LLCs.

No withholding tax is required if the distribution is a return of capital or does not constitute taxable income for the current year or previous year. Although no exemption is required in this situation, if the FTB upon verification determines that a withholding on a distribution was required, the LLC may be held liable for the amount that should have been withheld, including interest and penalties.

Please send waivers and inquiries to:

Post:

PRESERVATION AND EXECUTION SERVICES, MS F182
FRANCHISE-FINANCE
PO Box 942867
SAKRAMENT CA 94267-0651

Telephone:

888-792-4900 o
916-845-4900

Waivers may also be submitted online. Goftb.ca.govand search588 online.

Report the withholding tax on Forms 592, 592-B, and 592-F. Withholding tax payments are filed using Forms 592-A and 592-V, Resident and Non-Resident Withholding Statements.

Non-resident members' taxable income is the distributable portion of California LLC's withholding income, not the distributed amount. Visit the FTB Pub for more information. 1017

The nonresident withholding requirements and procedures discussed above are unrelated to nonresident-nonresident membership tax paid by an LLC on behalf of nonresident members as described in General Information P, Nonresident Members.

S. Checkbox rule

California generally complies with federal unit classification regulations (commonly known as “check-the-box” regulations). These rules permit certain unincorporated persons to elect to be treated as a partnership, corporation or single member LLC (SMLLC) for tax purposes (SB 1234; Stats. 1997, Ch. 608).

Generally, all elections held for federal purposes under state check-the-box regulations are treated as California elections. Separate elections are not permitted. If federal Form 8832, Election of Entity Classification, is filed with the federal declaration, a copy of the California declaration of the elected body for the year in which the election becomes effective must be included. The company must file the appropriate California declaration.

A “qualified entity” can choose its classification. A qualifying entity is a business entity that is not a trust, an entity organized under a federal or state law, a foreign entity expressly listed as an entity per se, or any other specified business entity. Other specific business entities under IRC are listed companies, REMICs, Financial Asset Securitization Investment Trusts (FASITs) or Regulated Investment Firms (RICs). A qualifying entity with two or more owners is a partnership for tax purposes unless it elects to pay taxes as a corporation. For tax purposes, a qualifying legal entity with a single owner is disregarded. When a company's separate existence is precluded, its activities are treated as owner activities and disclosed in the appropriate California statement.

exceptions

An exception to the general rule is provided in R&TC Section 23038(b)(2)(C) in the case of a qualifying business entity.

The exemption does not apply to a business entity that has been properly classified as a partnership taxable as a corporation for the 60 months ended January 1, 1997 and meets all of the following conditions:

• The commercial entity did not conduct business in California.
• The business unit received no income from sources in California.
• The commercial entity had no California residents.

Eligible companies are basically:

1. Business trusts classified as corporations under California law for tax years beginning before January 1, 1997, but classified as partnerships for federal tax purposes.
2. Pre-existing foreign SMLLCs that were classified as corporations under California law but were partnerships for federal tax purposes for tax years beginning before January 1, 1997.

These pre-existing foreign SMLLCs and corporate trusts will continue to be classified as corporations for California tax purposes and will continue to be required to file a Form 100 unless they irrevocably elect to be classified or disqualified in the same manner as for federal tax purposes. See Form FTB 3574 Special Election for Commercial Funds and Certain Foreign Single Member LLCs and Reg. Cal., Tit. 18 Sections 23038(a)-(b).

California regulations make the classification of business entities under federal regulations (Treas. Reg. Sections 301.7701-1 through 301.7701-3) generally applicable to California. If a qualifying entity is not accounted for federal tax purposes, it is not accounted for state tax purposes, except that an SMLLC must continue to pay taxes and fees, file a return, and limit claims to promoters.

Archiving requirements for unknown entities

An SMLLC must complete Form 568, Page 1, Page 2, Page 3, Page 7 (Schedule IW) and pay the annual tax and LLC fee (if applicable). If a non-resident has not signed the LLC Individual Member Agreement on page 3, they must complete the SMLLC Exhibit T on page 4.

However, if any of the following apply, Appendix B and Appendix K must also be archived:

• The amount of income or loss reported on Schedule B, line 1 or line 3 through line 11 is $3,000,000 or more.
• “Total Distributable Income/Payment Items”, Table K, line 21a, is greater than or equal to $3,000,000 OR less than or equal to – $3,000,000.

Use:If the SMLLC does not meet the 3 million criteria for submitting Schedule B (568) and Schedule K (568), the SMLLC must still complete Schedule IW.

If it is necessary to file Schedule K(568), Excluded Entities must prepare Schedule K(568) by specifying the amount of the relevant member's share of revenue, deductions, credits, etc., attributable to the entity's activities, are calculated from the Member account deleted. Federal Form 1040 or 1040-SR, including Exhibit B, C, D, E, F and Federal Exhibit K, or Federal Form 1120 or 1120S (Owner). SMLLCs do not complete Appendix K-1 (568). The sole proprietor would include the various items of SMLLC income, deductions, credits, etc. on the owner-filed tax return.

The use of credits attributable to the SMLLC is limited to regular tax liability on income attributable to the activities of the SMLLC. The limitation on SMLLC credits is the difference between: 1) the ordinary tax liability of the sole proprietor calculated on the income items, deductions, etc., attributable to the SMLLC; and 2) the sole proprietor's ordinary tax liability, calculated net of income items, deductions, etc., attributable to the SMLLC. It is the sole proprietor's responsibility to limit credits on the owner's tax return. The sole proprietor must be willing to provide information to support the use of credit attributable to the SMLLC.

The SMLLC holder must take the following steps to determine the SMLLC credit limit:

• Calculate homeowner tax with SMLLC income and homeowner tax without SMLLC income.
• Complete Plan P (100, 100W, 540, 540NR, or 541) up to the line where the credit is given.
• Determine the credit to use. The allowed value is the smaller of the following values:
  1. Full credit or limitation is based on LLC business income.
  2. The net taxable credit that may be offset against Schedule P credits (100, 100 W, 540, 540 NR, or 541) on the line above the line on which the credit is included.

The example below shows the credit limit calculation for an SMLLC owned by a Class C entity. The SMLLC has a research credit of $4,000. C Corporation's regular tax liability calculation on SMLLC income is $5,000. The C Corporation's regular tax liability calculation with no SMLLC income is $3,000. The tax difference is $2,000, which is the C Corporation credit limit on all LLC loans. The owner of the SMLLC performs the following steps:

1. Complete Appendix P (100), page 2 through line 4, column (c). The amount is $1,000.
2. Substitute the limit value from Appendix P(100), page 2, line 4, column (c) into column (f) of the table on this page.
3. Record the following values ​​from the table on this page in Appendix P (100):
   • $4,000 from column (d) of the table on this page through Exhibit P (100), page 2, row 5, column (a);
   • $1,000 from column (f) of the table on this page through Appendix P (100), page 2, line 5, column (b);
   • $3,000 from column (g) of the table on this page through Appendix P (100), page 2, line 5, column (d).

T. Backup Schedules

The LLC requires FTB approval to use a backup plan K-1 (568). The replacement program must include member instructions for Exhibit K-1 (568) or other prepared specific instructions. For more information and access to FTB Form 1096, Agreement to comply with FTB Pub. 1098, Annual Requirements and Specifications; or FTB mail. 1098, Annual Requirements and Specifications for the Development and Use of Reproducible, Absolutely Positionable, Scannable Substitute Tax Forms, email the FTB Substitute Forms Program atSubstituteForms@ftb.ca.gov.

U. IRC Section 179 Property Restoration

California will follow revised federal guidelines (with some exceptions) for reporting the sale, exchange, or disposition of property for which a partnership, LLC, or S corporation has previously claimed an IRC Section 179 expense deduction.

If there is a gain from the sale, barter or disposal of property for which an IRC section 179 expense deduction was claimed in a previous year, special rules apply. Members must follow the instructions on Federal Form 4797, Sales of Commercial Property.

LLCs must follow the instructions on Federal Form 4797, except that the amount gained from property that is subject to recovery under IRC Section 179 must be included in the LLC's total income.

Property gains subject to repossession under IRC Section 179 must be reported in Schedule K(568) and Schedule K-1(568) as supplemental information as reported on Federal Form 4797.

The LLC must provide all of the following information in relation to a commercial real estate disposal where an IRC section 179 expense deduction has been claimed in previous years:

1. object description.
2. Date of acquisition and commissioning of the property.
3. Date the property was sold or otherwise disposed of.
4. Gross sales price or realized quantity.
5. Cost of acquisition or other basis plus cost of sale (does not include the reduction in the entity's asset base due to the deduction of costs under Article 179 of IRC).
6. Allowable or allowable depreciation (excluding the deduction of expenses under Article 179 of the IRC).
7. Value of deduction of expenses under Article 179 of IRC (if applicable).
8. Indication of whether the disposition is due to an accident or theft.
9. If this is an installment sale, calculate the installment amount using the method specified in FTB 3805E, Installment Sale Revenue.

V. Suspension/Expiration

If an LLC fails to file a 568 form and/or pay any taxes, penalties or interest due, its powers, rights and privileges may be suspended (in the case of a domestic LLC) or forfeited (in the case of a foreign LLC). In addition, any contract entered into during the suspension or expiration is voidable at the request of a party other than the suspended or lapsed LLC. These agreements remain voidable and unenforceable unless the LLC requests a waiver of the invalid agreement and the FTB grants a waiver. See R&TC sections 23301, 23305.1 and 23305.2 for more information.

Use Tax in Western California

General information

The use tax has been in effect in California since July 1, 1935. It applies to the purchase of real estate from out-of-state sellers and is similar to sales tax paid on purchases made in California. If the LLC has not yet paid all due use taxes to the California Department of Taxes and Administration, you may report and pay the use tax due on your state income tax return. However, LLCs that have California Seller Licenses or are required to register with the California Bureau of Taxes and Administration for sales and use tax purposes cannot report use tax on their state income tax returns. See below for information and guidance on line 11 of the income tax return.

LLCs are generally required to pay California use tax on purchases of goods for use in California made by out-of-state sellers, e.g. B. by telephone, online, by post or in person.

LLCs must pay California use tax on taxable items if:

• Seller does not charge California sales or use taxes and
• LLC uses, distributes, stores, or consumes the item in California.

Example:LLC purchases a conference table from a North Carolina company. Company will ship the table from North Carolina to the LLC's California address for use by the LLC and will not charge any California sales or use tax. LLC owes use tax upon purchase.

However, not all purchases from the LLC are required to pay use tax. For example, the LLC would cover the purchase of office equipment but not the purchase of groceries or prescription drugs.

See LLC Publication 61 for more information on tax-exempt and non-taxable purchases.Sales and Use Taxes: Exemptions and Exclusions, on the California Department of Taxes and Administration website atcdtfa.ca.gov.

For more information on the California Use Tax, visit the California Department of Taxes and Fees Administration website atcdtfa.ca.govand write "Find out about consumption tax' in the search bar.

complete oneUse control tableto calculate the amount owed.

file extensions.If the LLC is requesting an extension to file its tax return, wait until the LLC files its return to report use taxable purchases and make the use tax payment.

Interest, Fines and Fees.Failure to report and pay proper use tax may result in the assessment of interest, penalties and fees.

payment request.For purchases made in tax years beginning on or after January 1, 2015, payments and credits reported on an income tax return apply to excise tax liability first, not income tax liability, penalties, and interest.

Changes to the Informed Use Tax.Do not file an amended limited liability company income tax return to verify the above use tax. If the LLC has changes to the excise tax amount previously reported on the original tax return, contact the California Department of Revenue and Revenue.

For help with excise tax questions, visit the California Department of Tax and Excise Administration website atcdtfa.ca.govor call the Customer Service Center at 800-400-7115 or (TTY) 711 (hearing and speech impaired). For California income tax information, contact the Franchise Tax Board atftb.ca.gov.

specific instructions

formulate 568

Fill in all applicable lines and timetables

Record all items specifically allocated to members on the appropriate line in Appendix K-1 (568) for the member and the totals on the appropriate lines in Appendix K (568).NOEnter these items directly on Form 568, Page 4, Exhibit A or Exhibit D (568).NOApply the proportional factor to the items in Appendix K (568).

Whole numbers must appear in the declaration and in the attached tables.

Name, address, California and FEIN SOS file number

Before submitting, please ensure entries have been made for the following:

• California SOS file number (12 digits)
• Federal Employer Identification Number (FEIN) (9 digits)
• LLC trade or legal name (use legal name on file with California SOS) and address, including P.O. Box (PMB) number, if applicable.

Use the Additional Information field only for the name "Owner/Representative/Caution" and other supplemental address information.

address abroad

If the limited liability company has a foreign address, follow local practice by entering the city, county, province, state, country, and zip code in the appropriate fields. Do not abbreviate the country name.

Item G - Total assets at the end of the financial year

Consult the instructions in Appendix L - Scales - before completing this item.

If the LLC is required to complete this item, enter the total assets of the LLC at the end of the fiscal year. This is determined by the accounting policy regularly used to maintain the LLC's books and records. If there are no assets at the end of the tax year, enter $0.

Item H(2) - Final Statement

If the LLC is filing a tax return for the most recent year, check the Final Return box on Form 568, Page 1, Item H(2) and check the Final Schedule K-1 (568) box for Item G ( 1). in Appendix K-1 (568). Include a statement explaining the reason for the termination or liquidation of the partnership.

Item H(4) Right to Protection

Check the box if submitting this Form 568 as a refund protection claim. A protection order is a claim for reimbursement filed before the statute of limitations has expired, the determination of which depends on the resolution of another disputed matter, such as a B. a legal dispute or pending state or federal examinations. For more information on submitting a protection claim, seeftb.ca.govand searchprotection claim.

ask me

All LLCshave toAnswer the three questions. The questions provide information about changes of control or ownership of entities that own or, in certain circumstances, lease real estate in California (R&TC, Section 64). (Immovable property includes land, buildings, structures and facilities; see Section 104 of the R&TC.)

If one of the answers "Sim," AChange of control and ownership declaration of legal entities, must be registered in the State of California; Failure to do so within 90 days of the event date will result in penalties. The form for this declaration is Form BOE-100-B filed with the California State Board of Equalization. Get this form and information from the BOE website (boe.ca.gov) by searching the Legal Entity Ownership Program (LEOP).

A change of ownership or control may occur if any of the following events occur during this year with respect to this LLC (or any entity in which you control or have a controlling interest):

• The percentage of ownership interests transferred to or owned or controlled bylikeperson oflikelegal entity cumulatively more than 50%.
• All interests transferred or retained bylikeirrevocable trust or custodian cumulative exceeded 50%.
• This LLC (or any entity in which it has a controlling or controlling interest) has acquired cumulatively greater than 50% ownership or control of the LLC or other equity interest in any entity.
• At the end of this year, cumulatively, greater than 50% of the total ownership interest was transferred in one or more transactions as an interest in California real estate was transferred to the LLC exempt from property tax reassessment under Section 62 (R&TC ) a)(2), creating a situation of interest to the original co-owners.

For the purposes of these questions, leased property is a leased portion of taxable property: (1) leased for a period of 35 years or more (including renewal options) unless leased to a governmental agency; or (2) leased for any period of time if leased to a government agency. For LLCs, stock ownership is measured by a member's equity interest and profit sharing in the LLC.

Section 64(e) of the R&TC requires that this information be used to determine whether there has been a change of ownership under Section 64(c) and (d); used by LEOP.

Article J - Principal Business Activity Code (PBA)

California uses the six-digit PBA code from the Major Commercial Codes table in this brochure.

For example, if the company as its principal business (a) purchases raw materials, (b) subcontracts labor to produce a finished product from the raw materials, and (c) retains ownership of the goods, the company is considered a manufacturer and you must in item C" Manufacturer" and in element I enter one of the codes (311110 to 339900) that appear in the list under "Manufacture",Codes for the main business activity.

Appendix IW, LLC Income Worksheet Instructions

For purposes of this worksheet, “California Total Income” means the total income from all sources originating in or attributable to that state. The definition of total income for purposes of LLC fee calculation excludes any allocation, distribution or income from another LLC that was already subject to the LLC fee. "Total Income" means gross income plus costs for goods sold paid or incurred in connection with the Taxpayer's business or commercial activities attributable to California. Total revenue from all sources originating in or attributable to that state will be calculated using the sales attribution rules set out in R&TC Sections 25135 and 25136 and applicable regulations, as amended by R&TC Regulations Section 25137, as applicable, determined, except for provisions that exclude revenue from the sale factor

If the SMLLC does not meet the 3 million criteria for submitting Schedule B (568) and Schedule K (568), the SMLLC must still complete Schedule IW. Excluded companies that do not meet the filing requirements to complete Schedule B or Schedule K must create Schedule IW by providing the California values ​​attributable to the excluded company from the member's Federal Schedule B, C, D, E, F (Form 1040 or Form 1040, respectively). 1040-SR) or additional hours related to other activities. For example, if an SMLLC has IRC Section 1231 income, the SMLLC would need to obtain the value from the table that contains this information, such as: B. Appendix D-1, and enter the value in line 14 of Appendix IW.

Determine total revenue from all sources that originate in or are attributable to California.

When completing rows 1-17 of this worksheet, use only values ​​derived from or attributable to California.If the LLC's business occurs entirely in California, the full amount of sales will be allocated to California and recorded in Schedule IW. If the LLC conducts business both inside and outside of California, the LLC must allocate all of its earnings, item by item, to California based on the following rules:

sale of goods

All proceeds from the sale of tangible personal property destined for California (excluding sales to the US Government) are attributable to California if the goods are delivered or shipped to a buyer in California, regardless of onboard freight or other Conditions of Sale. Total proceeds from the sale of tangible personal property (excluding sales to the U.S. Government) shipped from a California office, shop, warehouse, factory or other storage location will be attributed to California unless the seller is subject to the US tax destination state. Any transport of goods by vehicle is a form of shipment, regardless of whether the vehicle is owned by the seller, the buyer, or a carrier. When a seller transfers title to the property at the buyer's place of business in California to a buyer, it is a California sale. However, if the property is transferred to an employee or agent of the buyer elsewhere in California and the buyer immediately transports the property to another state, the sale is not a California sale. (See Legal Resolution FTB 95-3).

All proceeds from the sale of tangible personal property to the US Government are attributed to California if the goods are shipped from California, even if the taxpayer is a tax resident in the state of destination. Only sales for which the US Government makes direct payment to the seller under the terms of the contract are considered US Government sales. Therefore, sales from a subcontractor to the prime contractor, the US Government side, typically do not constitute sales to the US Government.

Sales other than sales of tangible personal property

Market Allocation -Section 25136 of the R&TC requires all taxpayers to attribute sales, excluding sales of tangible personal property, using market attribution.

The market allocation method and proportioning by a single sales factor may pro rata generate California source income or business income when a taxpayer receives income from California source intangible assets or services. Such a recipe includes:

1. Service sales to the extent that the service buyer receives the service benefit in California.
2. Sales of intangible assets to California if the intangible assets are used in California. For negotiable securities, if the customer is a California resident, the sale will be in California.
3. Sale, lease, rent or license sale of real estate if the real estate is located in California.
4. Rent, lease or license sale of tangible personal property if property is located in California.

See R&TC Section 25136 and Cal. Registration number. code, title. 18 Section 25136-2, obtain Appendix R or go toftb.ca.govand searchmarket allocation.

Alternate Methods.There are alternative methods of attributing total revenue to California that apply to specific industries. These rules are contained in regulations made pursuant to Section 25137 of the R&TC. If the LLC is engaged in any of these lines of business, the sales subsidy method used in the rules applicable to the LLC's line of business must be used to determine the total revenue that originates from or is attributable to California.

The rules in Section 25137(c) of the R&TC, which are designed to eliminate the attribution items in their entirety, do not apply to the determination of California-originated or attributable to California income.

The definition of "aggregate income" excludes an assignment, distribution, or gain to one LLC from another LLC where such assignment, distribution, or gain is already subject to the LLC's fee. Do not include income on the worksheet that is already subject to the LLC fee.

step entities.LLCs with an ownership interest in a pass-through entity that is not an LLC must pay their share of the pass-through's "total income from all sources, originating in or attributable to this state" distribution. report unit. Its distributing portion must include the relevant cost of goods sold and any deductions taken from ordinary gross income to arrive at ordinary net income. Enter the value of the goods sold on line 3b and any deductions on line 3c. If you received Appendix K-1 (565) with information from Table 3, please insert the sum of the values ​​from Table 3 in Appendix IW, rows 3b, 3c, 8b and 9b as follows:

• Sum of all Table 3, rows 1a, sum of row 3b
• Sum of all Table 3, rows 1b, sum of row 3c
• Sum of all Table 3, rows 2, sum up to row 8b
• Sum of all Table 3, rows 3, sum of row 9b

All values ​​in Table 3 are from partnerships and LLCs that filed Form 565.

Lines 1b, 2b, 3b, 3c, and 17 cannot be negative numbers. LLCs that are Disregarded Entities calculate “Total Income” in Schedule IW. Use the appropriate lines.

formulate 568

Line 1 – Total earnings from Schedule IW, LLC Income Worksheet

Enter the LLC's “California Total Income” as calculated on line 17 of Exhibit IW. The amount entered on Form 568 line 1 cannot be a negative number.

Line 2 – Limited Liability Company Fee

Enter the LLC fee amount. The LLC must pay a fee if the total California income is $250,000 or more.

The LLC must estimate the fee due for the year and pay the estimated fee by the 15th of the sixth month of the current tax year.If the due date falls on a weekend or holiday, the deadline for submission and payment is extended to the next business day without penalty. LLCs use Form FTB 3536 to submit the fee estimate. LLCs will also use Form FTB 3536 to pay any LLC Fees due that are not paid as a timely Estimated Fee Payment by the LLC Return Due Date. A penalty will apply if the estimated LLC fee payment is less than the fee due for the year. There will be no penalty if the estimated fee paid on the due date equals or exceeds the total LLC fee for the previous tax year. See General Information G, Penalties and Interest for more details.

Line 3 - Annual Limited Company Tax 2019

Enter an annual tax of $800. This tax was due on the 15th of the fourth month (tax year) or April 15, 2019 (calendar year) after the start of the LLC's 2019 tax year and was paid on Form 2019 FTB 3522.If the due date falls on a weekend or holiday, the deadline for submission and payment is extended to the next business day without penalty.Failure to pay the LLC's annual tax within the prescribed time period will result in penalties and interest. See General Information G, Penalties and Interest for more details.

Line 4 – Tax Liability of Non-Consent Non-Resident Partners

Enter the calculated total tax on Appendix T, Page 4 of Form 568. The LLC is responsible for paying taxes to dissenting nonresident members and dissenting owners of disregarded entities. Treat a non-consenting owner of a disregarded business the same as a non-consenting non-resident member. See specific line instructions for Appendix T.

Non-resident member tax paid by an LLC on behalf of a non-resident without consent is attributed to the non-resident member at Exhibit K-1 (568).

Line 5 - Corporate level tax

Enter the California tax change resulting from federal audit adjustments. See R&TC section 18622.5 for more information.

line 7

Enter the amount paid using 2019 Form FTB 3537 and Form FTB 3522 and Form FTB 3536. If the LLC is a nonresident member that disagrees with another LLC, an amount will be recorded on line 15e of Schedule K-1 that LLC. LLC. In addition to the amounts paid on Forms FTB 3537, FTB 3522, and FTB 3536 of 2019, the amount on Schedule K-1, line 15e, can be claimed on line 7, but cannot exceed the amount on line 4 .

Line 9 – Withholding Tax (Form 592-B and/or 593)

If the LLC has been withheld by another entity, the LLC may assign the entire withholding tax credit to all of its members, or claim a portion on line 9 (which cannot exceed the taxes and fees due) and assign the remaining portion to all of its members. members. . If the LLC is claiming a portion of the withholding amount, attach a Form 592-B or Form 593, Real Property Tax Withholding Statement, to the end of the LLC's statement. The LLC must file Form 592 or 592-F and Form 592-B to allocate any remaining withholding taxes to its members. Visit the FTB Pub for more information. 1017

Line 11 - Excise duty

As explained in W General Information, California use tax applies to purchases of goods from out-of-state sellers (eg, purchases made by phone, online, through the mail, or in person) where payment has not been made. Sales or use tax and these items were used in California. If you have questions about whether a purchase is taxable, visit the California Department of Tax and Excise Administration website atcdtfa.ca.gov, or call the Customer Service Center at 800-400-7115 or (TTY) 711 (hearing and speech impaired).

Use:The following businesses are required to report purchases subject to use tax directly to the California Department of Taxes and Excise and cannot include the use tax on their tax returns:

• Businesses that have or are required to have a California Seller License.
• Businesses with gross income of $100,000 or more per year.
• Businesses registered or required to be registered with the California Bureau of Taxation and Administration to report use tax.

An LLC that is not required to report use taxable purchases directly to the California Department of Taxes and Excise may, with certain exceptions, report use tax on its limited liability company income tax return. To report consumption tax on your tax return, complete the consumption tax worksheet on this page.

Use:An LLC may not report use tax on its income tax return for certain types of transactions. These types of purchases are listed in the instructions for completing the worksheet, row 1.

If the LLC owes use taxes but does not report them on its income tax return, the LLC must file and remit the tax with the California Department of Internal Revenue and Tax Administration. For information on how to report excise taxes directly to the California Department of Tax and Excise Administration, visit the website atcdtfa.ca.govand write "Find out about consumption tax' in the search bar.

Failure to report and pay proper use tax may result in the assessment of interest, penalties and fees.

Use control table

Round all values ​​to the nearest whole dollar.

1. Enter purchases from out-of-state sellers that were made without paying California sales/use tax.
   See worksheet instructions.
2. Enter the applicable sales and use tax rate.
   See worksheet instructions.
3. Multiply row 1 by the tax rate in row 2. Enter the result here.
4. Enter any sales or use taxes paid to another state on Line 1 purchases. See worksheet instructions.
5. Full use tax due. Subtract row 4 from row 3. Enter the value here and in row 11. If the value is less than zero, enter -0-.

Return, line 1, use taxable purchases

Report purchases of items that would be subject to sales tax if purchased from a California retailer, unless your receipt shows that the California tax was paid directly to the retailer. For example, purchasing clothing in general would be included, but purchasing groceries or prescription drugs would not be exempt. For more information on tax-exempt and non-taxable purchases, visit the California Department of Tax and Excise Administration website atcdtfa.ca.gov.

• include handling fees.
• NOinclude any other state sales or use taxes paid on purchases.
• Only enter purchases made during the year that match the tax return that the LLC files.

Use:Do not report the following types of purchases on your LLC's tax return:

• Vehicles, boats and trailers that must be registered with the Road Traffic Office.
• RVs or commercial buses that are required to be registered annually under the Health and Safety Code.
• Ships documented with the US Coast Guard.
• Airplane.
• Rental receipts for machinery, equipment, vehicles and other tangible assets for your customers.
• Cigarettes and tobacco products if the purchaser is registered as a consumer of cigarettes and/or tobacco products with the California Bureau of Taxation and Tax Administration.

Table, Line 2, Sales and Use Tax Rate

Enter the applicable sales and use tax rate for the California location where the property will be used, stored, or consumed. If the LLC does not know the applicable county or city sales and use rate, visit the California Department of Revenue and Tax Administration's website atcdtfa.ca.govand write "City and county sales and use tax' in the search bar or call the Customer Service Center at 800-400-7115 or (TTY) 711 (hearing and speech impaired).

Table, line 4, Credit for taxes paid to another state

This is a tax credit paid to other states for purchases reported on Line 1. The LLC can apply for a credit up to the amount of tax that would have been due if the purchase had been made in California. For example, if the LLC paid $8.00 out of state sales tax on a purchase and would have paid $6.00 in California, the LLC can only claim a $6.00 credit for that purchase.

Line 18 - Fines and interest

Enter penalties and interest. See General Information G, Penalties and Interest.

Line 19 – Total Amount Due

Enter the total amount due. See General Information and when and where to apply.

question k

Enter the maximum number of members in the LLC at any time during the fiscal year. For LLCs with multiple members, the number of Schedules K-1 (568) attached to Form 568 must equal the number of members on record in Question K.NOUse abbreviations or terms like "several.“

question L to question GG

Check the "Yes" or "No" box. SMLLCs must not provide Appendix K-1 (568).

Question L

An "investment firm" is a firm that meets both of the following criteria:

1. At least 90% of the acquisition costs of the total assets of the company consist of:
   • Eligible Investment Securities.
   • Deposits with banks or other financial institutions.
   • Office equipment and office space reasonably necessary for the pursuit of the activities of an investment firm.
2. Not less than 90% of the company's gross income comes from interest, dividends and gains from the sale or exchange of “qualifying investments”.

"Eligible Securities" include all of the following:

• Common and preferred stocks and debt securities convertible into common stocks.
• Bonds, debentures and other debt instruments.
• Deposits or equivalent in foreign and national currency and securities convertible into foreign securities.
• Securities backed by mortgages or assets guaranteed by government agencies.
• Repurchase Agreements and Loan Participations.
• Currency exchange and futures and futures contracts.
• Equity and bond indexed securities and futures contracts and other similar securities.
• Regulated Futures Contracts.
• Options to buy or sell any of the qualifying securities listed above, excluding regulated futures contracts.

“Eligible Investment Securities” do not include an interest in a partnership unless the partnership qualifies as an “Investment Partnership”. See R&TC Sections 17955 and 23040.1 and General Information O, Investment Funds for more information.

no question

If the answer to Question N is yes, read the federal partnership's instructions on an election to adjust the LLC's asset base under Section 754 of the IRC.

Question F

California requires that taxes be withheld from certain income payments or assignments and remitted to the FTB (R&TC Sections 18662 and 18666). If the LLC fails to withhold and the FTB, upon verification, determines that the withholding was required, the LLC may be liable for taxes and penalties. References to Forms 592, 592-A, 592-B, and 592-F relate to LLC withholding. If you require additional information on LLC withholding, please refer to General Information K, Required Information Statements and General Information R, Withholding Requirements in this booklet.

question &

See General Information S, Checkbox Regulations, for submission requirements for disregarded companies.

Question V

Federal Form 8886, Reportable Transaction Disclosure Statement, must accompany any statement in which the LLC claimed or reported income or a tax deduction, loss, credit or other benefit attributable to participation in a reportable transaction. If the LLC is required to file this form with the federal declaration, enclose a copy with the LLC's Form 568.NOI enclose copies of Federal Schedule K-1 (1065).

A material advisor is required to provide a reportable transaction number to all taxpayers and material advisors for whom the material advisor acts as a material advisor.

A reportable transaction is any transaction as defined in Section 18407 of the R&TC and Treas. Registration 1.6011-4 and includes but is not limited to:

• A confidential transaction offered to a taxpayer under terms of confidentiality and for which the taxpayer has paid a minimum fee.
• A transaction with contractual protection that entitles the taxpayer to a full or partial refund of fees if all or part of the expected tax consequences of the transaction are not sustained.
• A losing transaction is any transaction that results in the taxpayer claiming a Section 165 IRC loss of at least US$10 million in a single tax year, or US$20 million in any combination of tax years for partnerships that only have a company as a partner . (Browse any financial year for partners who are themselves partnerships), regardless of whether losses are passed on to one or more partners or not. $2 million in a single fiscal year, or $4 million in any combination of fiscal years for all other partnerships.
• A transaction with a significant accounting tax difference (performed before August 3, 2007). Effective January 6, 2006, this transaction is no longer required to be disclosed on Federal Form 8886. See IRS Notice 2006-06.
• A transaction in which the taxpayer claims a tax credit greater than $250,000 and holds the asset for less than 45 days (prior to August 3, 2007).
• An interest transaction is a transaction that is identical or substantially similar to one of the types of transactions that the IRS has identified as an interest transaction (consummated on or after November 2, 2006).
• A listed transaction is a specific reportable transaction or a substantially similar transaction that has been identified by the IRS or the FTB as a tax avoidance transaction.

Frag CC

Check the “Yes” or “No” box to indicate whether the LLC is deferring proceeds from the disposal of assets. If the answer is yes, enter the four-digit year of disposal of the assets (e.g. 2019) on line CC (2). If it is more than one year, write "see attachment" on the line and attach a calendar with the years. This question applies if the LLC is deferring proceeds from a disposal of assets in the current tax year or in previous tax years.

Ask the DD

Check the box for types of income deferred earlier than the LLC reports. If there are multiple sources of income, please tick the appropriate items and attach a table showing the type of income and the year of the disposition. If the LLC is reporting previously deferred “Other” types of income, check the “Other” box and include a schedule indicating the type of income and the year of disposal. This question applies regardless of whether the LLC reports deferred income at the beginning of the current tax year or prior tax years.

question E.E

LLCs doing business under a name other than that on page 1 of the Form 568 must provide the name "doing business as (DBA)" in question EE. If the LLC does business with multiple DBAs, please include a schedule listing all DBAs. Leave the EE question blank if the LLC does not use DBAs to conduct business.

FF question

Check the "Yes" or "No" box to indicate whether the LLC has been operating within the past five (5) years as another type of entity such as a corporation, S corporation, general partnership, limited partnership, an LLC, or a sole proprietorship. If the answer is yes, inform the previous FEIN(s), if different, the trade name(s) and type(s) of entity(ies) for declarations made to the FTB and/or the Federal tax to be filed on line FF ( 2). If there are multiple entries, write “see attachment” on the line and attach an attachment listing the above FEINs, trade names and company types.

G.G. question

Check Yes or No if the LLC previously operated outside of California. Check yes or no if this is the LLC's first year of operation in California.

Single Member LLC Information and Consent

Complete all requested information and provide the business identification number (Federal TIN/SSN or FEIN/CA Corp no./CA SOS File no.) reporting the company's revenue elements, deductions, credits, etc. The owner is responsible for limiting the claims attributable to the neglected enterprise. Select the SMLLC End Owner Entity Type check box.Use:Check the exempt organization if the owner is a pension plan, non-profit organization, insurance company, or government entity.

The LLC treats a sole proprietor's failure to sign this consent the same manner as a nonresident member's failure to sign FTB 3832. See specific line instructions for Appendix T.

If the sole member of the LLC signs the consent, simply complete Form 568, Page 1, Page 2, Page 3, Page 7 (Schedule IW) and pay the amount due.

Scheme B and K aremandatorysubmitted if one of the following conditions is met:

• The amount of income or loss reported on Schedule B, line 1 or line 3 through line 11 is $3,000,000 or more.
• “Total Distributable Income/Payment Items”, Table K, line 21a, is greater than or equal to $3,000,000 OR less than or equal to – $3,000,000.

See Schedule IW Instructions for more information.

LLCs with multiple members complete the remaining schedules as appropriate.

Single Member LLCs (SMLCs) do not do thisNOComplete Form FTB 3832. An SMLLC agrees to be taxed under the jurisdiction of California by signing the Single Member LLC Information and Consent on Form 568. Multi-Member LLCs must complete and sign Form FTB 3832.

Appendix A – Manufacturing Cost of Goods Sold

California reporting requirements for LLCs are generally the same as state reporting requirements for partnerships. Follow the instructions on Federal Form 1125-A, Cost of Goods Sold.

Schedule B - Income and Deductions

Line 1 to line 12

California reporting requirements for LLCs classified as partnerships are generally the same as state reporting requirements for partnerships.

Follow the federal Form 1065 instructions and report only income from business or commercial activities on line 1 through line 12. However, for California tax purposes, the LLC's business income is defined using the rules set forth in Form 1065. R&TC Section 25120. Therefore, certain income that may be portfolio income for federal purposes may be included as business income for California utility purposes.NOInclude rental income or portfolio income in these lines. Rental income and portfolio income are reported separately in Appendix K (568) and Appendix K-1 (568). Real estate leasing activities are also reported on Federal Form 8825, Company or S Corporation Property Lease Income and Expenses. Include a copy of Federal Form 8825 with Form 568.Use California amountsand include a statement reconciling any differences between federal and California values.

When completing these lines, use the world values ​​established under California law.

Line 4 has been separated from line 11 of Form 568 Schedule B to report total gains and total losses. Net values ​​are no longer shown.Report total wins and total losses separately, even if they are listed together on federal forms.For example, the LLC must report a $100 item under Other Revenue and a <$20> item under Other Losses. The "Other income" item of $100 should be reported on line 10 and the "Other losses" loss of <$20> should be reported as a negative number on line 11.

Line 6 - Total Farm Utility

Line 7 - Total property loss

On line 6, enter the LLC's total farm income from Federal Schedule F (Form 1040 or 1040-SR), Farm Profit or Loss, line 34, Net Farm Income or (Loss). On line 7, enter the LLC farm's total loss from Federal Schedule F (Form 1040 or 1040-SR), line 34. Attach Federal Schedule F to Form 568. If the amount that may be included for California purposes differs from Schedule F federal value, enter the California value and include an explanation of the difference.

Line 8 – Total profit from Appendix D-1

Line 9 – Total write-off of Appendix D-1

Consider only ordinary gains or losses from the involuntary sale, exchange, or conversion of assets used in the course of a business or trade. Ordinary gains or losses from the involuntary sale, exchange or conversion of assets from the leasing activity must be reported separately in Schedule K(568) and Schedule K-1(568), generally as part of the net profit (loss) on the leasing activity.

An LLC that is a member of another LLC or partner in a partnership must disclose its share of ordinary proceeds (loss) from involuntary sales, deals, or conversions (other than accidents or theft) in Schedule D-1, Sales of Commercial Real Estate. of the business or business assets of the other GmbH or partnership.

Line 13 to line 22

California reporting requirements for LLCs are generally the same as state reporting requirements for partnerships.

Follow the instructions on the federal Form 1065, reporting on line 13 through line 21 only deductions for business or commercial activities. Line 21 (Other deductions) includes repairs, rent, and taxes.NOInclude in these lines any expenses or deductions attributable to rental activity stock income. Deductions for rental activities and deductions attributable to portfolio income are disclosed separately in Exhibit K(568) and Exhibit K-1(568).

When completing these lines, use the world values ​​established under California law.

California follows state reporting requirements for organization and allocation of expenses and uniform capitalization rules.

For tax years beginning on or after January 1, 2014, California does not permit a deduction for any fine or penalty paid or imposed by a professional sports franchise owner, assessed or imposed by a professional sports league that includes that franchise . If the LLC deducted the fine or penalty for federal purposes, do not include the deduction for California purposes.

Legal Claim.To claim the deduction, enter the amount on line 21. If you choose to take the credit instead of the deduction, remember to use the California tax rate and add the credit amount to the total on line 10, Total Payments (Form 568, Appendix 1). To the left of this sum, write "IRC 1341" and the loan amount.

Line 17a - depreciation and amortization

On line 17a, enter only total depreciation and amortization that is claimed for assets used in a business or trade. Complete and attach Form FTB 3885L, Depreciation and Amortization (included with this booklet) to calculate depreciation and amortization. Transfer the total amount from FTB Form 3885L, line 6, to Form 568, page 4, line 17a or Federal Form 8825 (use California values) as appropriate.

NOInclude on this line the possible deduction for expenses with depreciable property (Article 179 of IRC). This expense is not deducted by the LLC. Instead, the expenses are routed separately to members and reported on line 12 of Appendix K (568) and Appendix K-1 (568).

Appendix T – Tax Responsibility of Non-Consent Non-Resident Members

Use Appendix T to calculate tax liability for non-resident non-consent members that the LLC must pay. List the names and identification numbers of all non-resident members who have not signed FTB Form 3832, or individual non-resident members who have not signed the SMLLC information and consent on page 3 of Form 568 and have not given their consent to submit from the to tax California. Also list the distributing portion of the non-resident members' income.

To calculate the amount of tax the LLC must pay on behalf of a non-consenting non-resident member, multiply the distributing portion of that member's income by the following rates:

• 8.84% if the member is a C corporation.
• 12.3% if the member is an individual, partnership, LLC, estate, or trust.
• 1.5% if the member is an S corporation.

Tax of non-resident members without the consent of each member may be reduced by the amount of tax previously withheld under Section 18662 of the R&TC and paid by the LLC on behalf of that member.

Multiply column (c) by column (d) and record the result in column (e) for each non-resident member who disagrees. Subtract the amount in column (f) from column (e) and enter the net amount in column (g) for each non-resident member who does not agree. Column (g) cannot be less than zero.

Taxes paid by the LLC on behalf of non-resident members without consent are due on the original tax return due date.

Memory:All members are required to file a California tax return. Completing Schedule T or FTB 3832 does not satisfy the California member's enrollment requirements. Corporate Members are also considered to be doing business in California and may have additional registration requirements. Visit the FTB Pub for more information. 1060, Guidance for Companies Doing Business in California. Non-residents may be eligible to file a Group Form 540NR and must obtain an FTB publication. 1067, Guidelines for Completing a Group Form 540NR.

Appendix L - Balance Sheets

If the answer to questions 4a through 4c on Federal Form 1065, Schedule B is yes, and the LLC has 10 or fewer members, the LLC need not complete Schedules L, M-1, M-2, or Item G. on page 1 of Form 568 or Item I of Exhibit K-1 (568).

California reporting requirements for LLCs classified as partnerships are the same as state reporting requirements for partnerships. Amounts reported on the balance sheet must be consistent with the books and records of the LLC and must include all amounts, whether taxable or not. Include a statement explaining any differences between federal and state figures or the LLC's balance sheet and books and records. Follow the instructions on Federal Form 1065, Schedule L.

Appendix M-1 - Reconciliation of ledger income (losses) to payroll income (losses) and Appendix M-2 - Analysis of shareholders' capital accounts

If the LLC is required to complete Exhibit M-1 and Exhibit M-2, the amounts reported must be consistent with the LLC's books and records and balance sheet amounts. Include a statement explaining the differences.

When completing Exhibit M-1, use the worldwide values ​​established under California law. In addition, the values ​​in Appendix M-2 must correspond to the total values ​​reported in item I, column (c) of Appendix K-1 (568) for all members.

Reconciliation of Net Income (Loss) for Certain LLCs.For tax years beginning on or after January 1, 2014, the IRS allows LLCs with total assets of at least $10 million but less than $50 million in total assets at the end of the tax year to file Schedule M-1 ( Form 1065) to submit Exhibit M-3 (Form 1065), Parts II and III. However, these LLCs require Exhibit M-3 (Form 1065), Part I.for California purposes, the LLC must complete California Schedule M-1,jAttach the following:

• A copy of the Federal Schedule M-3 (Form 1065) and associated deadlines for the California Limited Liability Company income statement.
• A full copy of the federal declaration.

The FTB accepts the Federal Schedule M-3 (Form 1065) in spreadsheet format when that is more convenient.

Exhibit O – Comparative Amounts Used to Capitalize a Limited Liability Company

Complete Exhibit O if you checked “Initial Return” in Question H of Form 568.

Exhibit O is a summary of the companies that were liquidated to capitalize the LLC and the amount of gains recognized on such liquidations.

Provide the full names and identification numbers of all liquidated entities. Check the box that corresponds to the type of liquidated entity. Include the amount of liquidation proceeds recognized to capitalize the LLC.

Schedule K (568) and Schedule K-1 (568) – Member's share of income, deductions, credits, etc.

purpose of the schedules

Schedule K (568) is a summary of the LLC's income, deductions, credits, etc., and Schedule K-1 (568) shows each member's distribution portion. Line items for both programs are identical unless otherwise noted.

A copy of each Exhibit K-1 (568) must accompany the Form 568 upon filing.

Be sure to give each member a copy of their respective Addendum K-1 (568). The LLC must also include a copy of the member's instructions for Schedule K-1 (568) or specific instructions for each reported item. These items must be provided to the member by the Form 568 due date.

See the Federal/State Lines Reference Chart in Appendix K of this booklet and lineage-specific instructions for completing California Appendix K (568) and Appendix K-1 (568).

Appendix K (568) only.

Rejected Companies: Submission of Appendix K is only required if one of the following applies:

• The amount of income or loss reported on Schedule B, line 1 or line 3 through line 11 is $3,000,000 or more.
• “Total Distributable Income/Payment Items”, Table K, line 21a, is greater than or equal to $3,000,000 OR less than or equal to – $3,000,000.

If you are required to file Schedule K (568), prepare Schedule K by entering the amount of the member's applicable share of income, deductions, credits, etc. Attributable to the activities of the excluded entity on the member's federal Form 1040 or 1040. SR including Schedule B, Ordinary Interest and Dividends, Schedule C, Business Income or Loss (Individual Asset), Schedule D, Capital Gains and Loss, Schedule E, Supplementary Income and Loss and Schedule F, Federal Schedule K or Federal Form 1120 or 1120S, Owner.

In column (b) of Schedule K (568), Membership Income Portions, Deductions, Credits, etc., enter the values ​​from Federal Schedule K (1065), Membership Distribution Portion Items.

In column (c), enter adjustments resulting from differences between state and California law (not adjustments related to California sources of income). In column (d), enter worldwide income calculated under California law.

In order for a member to comply with the requirements of Section 469 of the IRC, income (losses) from business or trading activities, income (losses) from rental activities and income (losses) from portfolios must be considered separately by the member. Rental income (loss) and portfolio income (loss) are not reported on Form 568, page 4, therefore these amounts are not combined with business or business income (loss). Use Appendix K, lines 2, 3, 5, 6, 7, 8, 9, and 11a to report these values.

Compliance with LLC filing requirements

To ensure accurate and timely LLC Form 568 processing, please verify the following:

• An Exhibit K-1(568) has been added to Form 568 for each member listed on Form 568, Page 2, Question K. LLCs eligible for a reduced filing program, see General Information D, Who Should File.
• Attachment K-1 (568) contains the member's correct name, address and identification number.
• Items A through I are completed in Appendix K-1 (568).
• The box corresponding to entity type in Appendix K-1 (568), page 1, question A, is checked for each member.
• All Appendices K-1 (568) are consistent with Appendix K.
• The Membership Percentage in Appendix K-1 (568), Question C, is expressed in decimal format and scaled to four decimal places (ie, 33.5432). Don't write fractions, percent signs (%), or use terms like "Several" Ö"Formula".
• Replace computer-generated Schedule K-1 (568) formshave tobe approved by FTB.

K-1 schedule only (568).

Appendix K-1 (568) lists the distributing income shares, deductions, credits, etc. every member. from the GmbH. The LLC completes Exhibit K-1 (568) by entering the member's and LLC's information (name, address, identification numbers), Questions A through I, and the member's share of the distribution item.

For members with PMB addresses, include the designation number in the member's address space. Precede the number (or letter) with "PMB".

For each individual member, enter the member's Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). Enter your FEIN for all other members. However, if a member is an Individual Retirement Arrangement (IRA), enter the IRA custodian identification number.NOEnter the SSN or ITIN of the person for whom the IRA is being held.

The LLC files a California Schedule K-1 (568) with the LLC statement for each member and provides a copy to the applicable member.NOAttach Federal Schedules K-1 (1065). The LLC must also provide each member with a copy of the member instructions for Schedule K-1 (568) or specific instructions for each reported item.

Determining the LLC Source of Income for a Resident Member

A resident member must include the full distributing portion of the LLC's income in its California income. If the LLC distributes its income, the member may be entitled to a tax credit for taxes paid to other states. Member should be referred to California Schedule S, Other State Tax Credit for additional information.

Determining the LLC Source of Income for a Nonresident Member

Commercial income:Regardless of federal income classification, California source LLC income is determined in accordance with California law (Cal. Code Regs., Title 18, Section 17951-4).

California-source income from a non-resident member's trade or business is determined as follows:

• A trade or business located wholly in California, income from that trade or business is California source income;
• A corporation both inside and outside of California, but the portion in the state is so separate and distinct that it can be counted separately, so that only that separate income in the state is California source income; any
• A single industry or business within and outside of California, then the business income that comes to California from that industry or business is prorated.

The LLC must allocate business income in accordance with the Uniform Allocation of Income for Tax Purposes Act (R&TC Sections 25120 through 25139). Special rules apply when the LLC has non-business income.

Non-business income:Non-business income attributable to real or tangible personal property (such as rents, royalties, or gains or losses) in California is California source income (Cal. Code Regs., Title 18, Section 17951-3 and R&TC Sections 25124 and 25125). Enter this information on the appropriate line in Appendix K-1 (568). If the LLC believes it may have a uniform member, that member's information must also be recorded in Exhibit K-1(568), Table 2, Part B for that member.

The source of non-commercial income attributable to the intangible property depends on the member's country of residence or business address. Individuals generally derive this income from their state of residence and corporations from their place of employment, R&TC Sections 17951 to 17955.

Because the determination of the source of non-commercial intangible income must be made at the member level, such income is not reported in Appendix K-1 (568), column (e). It is inserted in Table 1 only.

Full K-1 Schedule (568)

Questions from A to I

For more information on completing Question A through Question I, see the instructions on Federal Form 1065, Specific Instructions, Exhibit K-1 Only, Part II, Partner Information.

Question A, Appendix K-1 (568)

Select the appropriate check box to specify the member's entity type. Exempt Organizations, regardless of legal form, must check the Exempt Organization box.

Question B, Appendix K-1 (568)

Tick ​​the appropriate box to indicate whether or not this member is a foreigner.

Question C, Appendix K-1 (568)

Percentages must be 4-7 characters long and have a decimal point before the last 4 characters. For example, 50% is represented as 50.0000, 5% as 5.0000, and 100% as 100.0000.NOType a fraction, the percent sign (%), or the phrase "Several" Ö"Formula".

Question D, Appendix K-1 (568)

For more information on completing Question D, see the instructions for Federal Form 1065, Specific Instructions, Exhibit K-1 Only, Part II, Partner Information.

Question E, Appendix K-1 (568)

Enter the reportable transaction number and/or tax accommodation registration number, if applicable. For more information, see the instructions on Form 568, Question V.

Question F(1), Appendix K-1 (568)

If the “YES” box is checked on Form 568 question T, check the box for question F(1) in Exhibit K-1 (568).

Question F(2), Appendix K-1 (568)

If the “YES” box is checked on Form 568 question L, check the box for question F(2) in Addendum K-1 (568).

Question G(1), Appendix K-1 (568)

If the LLC is filing a tax return for the most recent year, check the Final Return box on Form 568, Page 1, Item H(2) and check the Final Schedule K-1 (568) box for Item G ( 1). in Appendix K-1 (568). Include a statement explaining the reason for the dissolution or liquidation of the limited liability company.

Complete from column (b) to column (e).

• In column (b), enter the values ​​for the Federal K-1 Program (1065).
• column (c), enter adjustments resulting from differences between federal law and California law for each individual line item.
• columns (d), enter the result of combining column (b) and column (c). This is total income under California law.

column(s)Used to report California sources or amounts and credits distributed. Add the following items to this column:

For individuals:

1. Income from separate businesses, trades, or occupations wholly in California, Cal. Registration number. code, title. 18 Section 17951-4(a).
2. Income from a business or trade conducted inside and outside of California, if the portion of the business conducted within California can be separately counted, Cal. Registration number. code, title. 18 Section 17951-4(b).
3. Non-business income from real estate and property in California. In column (e), enter the member's share of income from California non-commercial real estate and tangible assets.
4. Income from a trade or business conducted in or outside of California. Enter the amount of business income allocated to California under Schedule R. This includes intangible income attributable to business, trade or profession, Cal. Registration number. code, title. 18 Section 17951-4(c) and R&TC Sections 25128 through 25137. The combined trading revenue is then allocated by sales factor. Use a three-factor formula consisting of payroll, ownership, and a single weighted sales factor if more than 50% of the LLC's business income comes from agricultural, extractive, savings and lending, banking, and financial activities. Dealer LLCs must complete Exhibit R and attach it to Form 568.
5. California Loans.

For corporations and other business entities:

1. Income from a trade or business conducted in or outside of California. See point 4 above for individuals.
2. Non-business income from real estate and property in California. In column (e), enter the member's share of income from California non-commercial real estate and tangible assets. If the LLC believes it can have a unitary member, record that income in Table 2, Part B.
3. California Loans.

All members are exempt from reporting non-business income from intangible assets in column (e). Record this recipe in Table 1. See the Member Instructions for Appendix K-1 (568) for more information.

Column (d) and Column (e):Schedule K-1(568), column (d), contains the shareholder's distributing portion of the LLC's total income, deductions, gains or losses under California law. Column (e) includes only income, deductions, gains or losses distributed to or from California. The calculation of these amounts is a matter of law and regulation. The member's place of residence is irrelevant in calculating the amounts to be included in column (d) and column (e).

For an LLC that operates entirely in California, column (e) is generally the same as column (d) except for non-business intangible income (e.g. non-business interests, dividends, gains or losses from sale). of securities).

For an LLC operating in and outside of California, the values ​​in column (d) and column (e) may be different.

If the LLC knows that the member is a resident individual, the LLC answers Yes to Question H in Exhibit K-1 (568) and completes only column (d). Otherwise, the LLC column (e) must be completed for all other members.

Complete Table 1

Complete Table 1 only if the LLC has non-commercial intangible income. If the LLC has non-commercial intangible income and knows that the member is a resident individual, the LLC is not required to complete Schedule 1 for the member.

Complete Table 2

The LLC completes Table 2 Parts A through C for entity members and Table 2 Part C for all non-entity members. It is not necessary to fill out Table 2 for non-uniform individuals.

The LLC will complete Table 2, Part C to report distributing ownership, payroll, and member sales percentage.Overall in California.

Members use Table 2, Part C to determine compliance with California ownership, salary and sales limits for doing business in California. For more information, see General Information A, Important Business Information.

Special Rules for Members and LLCs in a Single Business Entity

Special rules apply when the LLC and a member are involved in a single business entity. In this case, a unit member does not use the income information listed in column (e). Instead, the distribution portion of the member's merchant income is combined with the member's own merchant income. Combined business income is distributed using a distribution formula consisting of a sum of the member's share of the LLC's distribution factors and the member's own distribution factors, Cal. Registration number. code, title. 18 Section 25137-1. The determination of whether a single sales factor or a 3-factor proportion formula applies to mixed revenue is made at the member level. The member's distribution share of income and business holdings, payroll and sales factors are recorded in Table 2.

If the LLC knows that all members are consistent with the LLC, the LLC need not complete column (e) or attach Exhibit R. See Exhibit K-1 Instructions for Members (568) for more information.

Special regulations for shareholders and partnerships in partnerships

If the sharing industry or business conducted by a partner is not consistent with the sharing industry or business of the partnership, the partnership shares its commercial revenues separately, using only Annexes R-1, R-2, R-3 and R-4. In column (e) the various trading revenues allocated to California are entered.

Special reporting requirements for passive activities

If income (losses), deductions, or credits from more than one activity are reported in Exhibit K-1 (568), the LLC must include Exhibit K-1 (568) with a statement for each activity that is one activity. passive. for members Rental activities are passive activities for all members; Business or business activities may be passive activities for some members. The attachment must include all of the information detailed in the instructions for the federal K-1 schedule (1065).

Specific line instructions

The California K-Schedule (568) generally follows the federal K-Schedule (1065). When state and California law are the same, California Schedule K (568) instructions refer to state Schedule K (1065) instructions.

When completing California Schedule K (568) and Schedule K-1 (568), refer to theAppendix K Federal/State Reference Table.

Line 1 to Line 11

See instructions for federal Form 1065, Specific Instructions, Schedules K and K-1 and Schedule K-1 (568) Income (Loss), line 1 through line 11. Form 568 Schedule K and Schedule K-1, lines 10a and 10b were separated to show total profit and loss and rows 11b and 11c have been separated to show total other profit and loss. Net values ​​are no longer shown. For example, the partnership must report an IRC 1231 winning entry of $100 and an IRC 1231 loss entry of <$60>. The IRC section 1231 $100 gain element should be reported on line 10a and the IRC section 1231 loss element <$60> should be reported as a negative number on line 10b.

Energy saving discounts, vouchers or other financial incentives are excluded from the income.

Schedule K (568) must include all income and losses from LLC activities as required by California law and regulations. Any differences reported between federal and California numbers must relate to differences in tax laws.NOApply the apportionment formula for income or losses from Appendix K (568).

Eligible Opportunity Zone Funds -The TCJA established zones of opportunity. IRC Sections 1400Z-1 and 1400Z-2 provide for a temporary deferral of the inclusion of gross income for capital gains reinvested in a qualifying opportunity fund and excludes capital gains on the sale or switching of an investment in such funds. California does not comply with the deferral and exclusion of capital gains reinvested or invested in Federal Opportunity Zone funds pursuant to IRC Sections 1400Z-1 and 1400Z-2 and has no similar regulations. For California purposes, if investment gains on properties in Qualifying Opportunity Zones were included in prior fiscal year earnings, do not include the gain in current year earnings.

Financial incentive for seismic improvement

For tax years beginning on or after July 1, 2015, California law permits an exclusion of income for loan forgiveness, grants, credits, rebates, coupons, or other financial incentives provided by the California Home Mitigation Program or the Authority of California Earthquakes Supporting one of the owner's or occupant's home with expenses paid or commitments made to mitigate damage caused by earthquakes. If amounts were included for federal purposes, exclude that amount for California purposes in line 11b, column (c).

Income as per IRC Section 951A.Californiait is notaccording to IRC Section 951A. If global intangible intangible tax income (GILTI) was included for federal purposes, make an adjustment in line 11b, column (c).

IRC section 965 inclusions.Californiait is notpursuant to Section 965 of IRC. If federal deferred foreign income was included, make an adjustment in line 11b, column (c). In addition, taxpayers filing IRC Section 965 amounts on their federal tax returns must include "IRC 965" at the top of their California tax return or follow the tax software guidelines.

Row 1, Column (c)

An adjustment to increase a Services LLC's business revenue to reflect the adjustment to the Guaranteed Deduction Required by the Code of Reg. Cal., Tit. 18 Section 17951-4(g) must be performed here.

Line 10a and line 10b

In lines 10a and 10b, enter the values ​​from Appendix D-1, line 7.NOinclude specially allocated ordinary gains and losses or net gains (losses) from involuntary conversions due to accident or theft on that line. Instead, report them on line 11b or 11c, along with a schedule and explanation.

If the LLC has more than one activity and the value in line 10a or line 10b is a passive activity value for the member, attach a statement to Appendix K-1 (568) specifying the activity to the IRC section 1231 earned (loss). Report.

deductions

Line 12 to line 13

See instructions for Federal Form 1065, Special Instructions, Schedules K and K-1 and Schedule K-1 (568), Deductions, line 12 and line 13a through line 13e.

IRC Section 179 expense deductions are governed by different California rules. See instructions for FTB Form 3885L.

IRC section 965 deductions.Californiait is notpursuant to Section 965 of IRC. If a federal deferred foreign income deduction was made, make an adjustment in line 13e, column (c).

Line 13a – Charitable donations

Enter the total amount of charitable contributions made by the LLC during its fiscal year in Exhibit K (568) and each member's distribution portion in Exhibit K-1 (568). Include a detailed list of the amounts subject to the 50%, 30% and 20% limits on both schedules.

For tax years beginning after December 31, 2017 and before January 1, 2026, the 50% limit of IRC section 170(b) applies to cash contributions to public charities and certain private foundations. increased to 60% for federal purposes. California is not adapting. The California limit is 50%.

Members may deduct dues to eligible organizations under Section 170 of IRC. California law conforms to federal law prohibiting the deduction of pretax lobbying activities, club dues, and employee compensation in excess of $1 million.

California meets the justification requirements of IRC Section 170(f)(8) for charitable donations.

For tax years beginning on or after January 1, 2014 and before January 1, 2023, do not include amounts considered for the college entrance tax credit as a tax deduction on line 13a.

Line 13b – Interest expense on investments

This line must be completed whether or not the member is subject to the investment participation rules. Enter interest paid or accrued on the purchase or sale of fixed assets. Assets held for investment include assets that generate portfolio income (interest, dividends, annuities, royalties, etc.). Therefore, interest expense attributable to portfolio income should be reported on line 13b of Appendix K(568) and Appendix K-1(568) rather than on line 13d of Appendix K(568) and Appendix K-1(568).

Retained investment property includes a member's involvement in any business or commercial activity that is not a passive activity for the LLC and in which the member does not have a material interest. An example would be the rule relating to a member's working interest in an oil and gas concession (ie the member's interest is unrestricted if the member is not significantly involved in oil and gas activities). Investment interest does not include interest expense attributable to passive activity. For more information, see Form FTB 3526, Deduction of Interest Expense on Investments.

line 14

The information reported in line 14 of Federal Schedule K (1065) and box 14 of Federal Schedule K-1 (1065) does not apply to California and therefore there is no line 14.

credits

California line numbers differ from state line numbers in this section.

Line 15a – Total Retention

Add the totals in Appendix K-1 for all members (568). If the LLC has withheld taxes or if there is a transfer of another entity's withholding credit or a withholding protection, the LLC must provide each affected member (including California residents) with a completed 592-B. Members must include Form 592-B on the front of their California tax return to claim any withholdings. Addendum K-1 (568) canNOused to claim this held balance.

Line 15b to line 15d

These rows correspond to rental activities. Use line 15f to report credits related to business or commercial activities.

Line 15b - Popular home loan

Owners of residential rental projects offering low-income housing may apply for a loan (section 42 of the IRC). The credit is generally for buildings commissioned after 1986. Request Form FTB 3521, Low Income Housing Loan, for more information.

Line 15c – Credits related to real estate rental activities that differ from line 15b

Report any information partners need to calculate loans related to real estate rental activities, excluding public housing loans. Attach to each member's Appendix K-1 (568) a statement showing the amount to be reported and the appropriate form in which the amount is to be reported.

Line 15d - credits related to other income activities

Use this row to report information members need to calculate credits related to a rental activity. Attach to each member's Appendix K-1 (568) a statement showing the amount to be reported and the appropriate form in which the amount is to be reported.

Line 15e – Nonresident Member LLC tax without paid consent, Exhibit K-1 only (568).

If the LLC has paid income tax on behalf of a non-resident member who has not signed Form FTB 3832, the amount paid will be recorded on the member's Schedule K-1 (568), line 15e. This is not a distributable share item, it is only disclosed in Appendix K-1 for the specific non-resident member. Members must include a copy of Exhibit K-1 (568) on their California tax return in order to claim tax paid by the LLC on their behalf.

If an LLC has paid income tax on behalf of a member that is an LLC and Form FTB 3832 has not been signed on behalf of the LLC member, the amount paid by an LLC will be recorded on the LLC's Schedule K-1 (568). . Line 15e. Some or all of this amount may be reported on line 7 of Form 568 (see instructions). The remaining balance is allocated to all members according to their membership in the LLC. Individual members must include a copy of the following on their California tax return in order to claim their share of tax paid by the LLC on behalf of the LLC member:

• Exhibit K-1 (568) previously issued by your LLC to an LLC member
• Exhibit K-1 (568) issued by the LLC member that paid LLC tax to its members.

Line 15f - Other credits

Include a schedule showing each member's credit share or credit information related to a business or commercial activity.

Credits that may be reported on line 15f (depending on the type of activity they are associated with) include:

• California is competing for the tax credit. Get Form FTB 3531.
• Tax credit for university entrance. Request FTB Form 3592.
• Disability access credit for eligible small businesses. Request FTB Form 3548.
• Transport credit for donated agricultural products. Request FTB Form 3547.
• Extended Oil Recovery Credit. Request FTB Form 3546.
• Enterprise Zone (EZ) Setting Credits. Request form FTB 3805Z.
• Local Agency for the Recovery Area of ​​the Military Base (LAMBRA) Borrowing. Request FTB Form 3807.
• Natural Heritage Preservation Credit. Get Form FTB 3503.
• New Advanced Strategic Aircraft Credit. Use credit code 236.
• New California film and television production credits. Get Form FTB 3541.
• New credit for donated fresh fruit or vegetables. Request FTB Form 3814.
• Credit for new employment. Request FTB Form 3554.
• Recognition for the prisoner's work. Get Form FTB 3507.
• research credit. Request FTB Form 3523.

All loan forms can be found atftb.ca.gov/formularios.

The line of other credits may also include the distribution portion of the net income tax paid by the LLC to other states. Subject to the limitations of Sections 18001 and 18006 of the R&TC, members may claim a credit against their individual income tax for net income taxes paid by the LLC to another state. The amount of tax paid must be supported by a payment schedule and proof of the LLC's tax liability to other states. Refer members to California Schedule S for more information.

line 16

The information reported in line 16 of Federal Schedule K (1065) and field 16 of Federal Schedule K-1 (1065), Foreign Transactions, does not apply to California and therefore there is no line 16.

Alternative Minimum Tax Positions (AMT)

Line 17a to line 17f

Enter each member's distribution portion of income and deductions that are adjustments and tax preferences. Table P (100, 100W, 540, 540NR or 541), Alternative Minimum Tax and Credit Limits to determine amounts and other information.

The California law follows existing federal law, which eliminates the property contribution deduction estimated as a tax concession. As a result, taxpayers are no longer required to include in their calculation of the alternative minimum taxable income the amount by which an allowable deduction for the contribution of estimated assets exceeds the taxpayer's adjusted base for the contributed assets.

See the Federal Items Schedule K (1065), Alternative Minimum Tax (AMT) instructions, line 17a through line 17f, for more information. For differences between federal law and California's Alternative Minimum Tax (AMT) law, see R&TC Section 17062.

Tax-free income and non-deductible expenses

Line 18a through line 18c - Non-deductible tax-free income and expenses

In Appendix K (568), enter the amounts for tax-free interest income, other tax-free income and non-deductible expenses from Federal Appendix K (1065), lines 18a, 18b and 18c. Record Exempt Income, Other Exempt Income, and Nondeductible Expenses from Schedule K-1 (1065), Box 18, in Schedule K-1 (568) The LLC must provide each member with a description and a member contribution amount for each applicable Californian articles in this category.

distributions

Line 19a and Line 19b - Distributions

In Schedule K (568), insert the present values ​​and marketable securities and other assets from Federal Schedule K (1065), line 19a and line 19b. In Schedule K-1 (568), record amounts of cash and negotiable securities and other assets from Federal Schedule K-1 (1065), box 19.

other information

Line 20a and line 20b – investment income and investment expenses

These lines must be completed regardless of whether the partner is subject to the rules for participation in the investment or not.

On line 20a, enter only the capital gains included in line 5, line 6, line 7 and line 11a of Schedule K (568) and Schedule K-1 (568). On line 20b, enter only the capital expenditures included in line 13d of Appendix K (568) and Appendix K-1 (568).

When investment income or expense is included in amounts that are required to be reported separately to the member in Schedule K-1 (568), items other than the amounts reported in lines 5 through 9, line 11a and line 13d of Schedule K- 1 (568), provide each member with a statement identifying those values.

Investment income includes gross income from investment properties, gains on the disposal of investment properties and other amounts that are gross portfolio income. Investment income and expenses generally do not include income or expenses from passive activities.

Properties subject to a net lease are not treated as investment property as they are subject to the passive loss rule.NOReduce capital gains from losses of passive activities.

Capital expenditures are deductible expenses (other than interest) that are directly related to the generation of capital gains. Get the FTB 3526 instructions for more information.

Line 20c - Other information

See instructions for Federal Schedule K (1065), line 20c, Miscellaneous Items and Values. For credit reclaims, please enclose a timetable that includes the credit reclaim names and amounts.

Property gains subject to Section 179 IRC Repossession must be reported in Schedule K as supplemental information as reported on Federal Form 4797.

The LLC must provide all of the following information in relation to a commercial real estate disposal where an IRC section 179 expense deduction has been claimed in previous years:

1. object description.
2. Date of purchase of the property.
3. Date the property was sold.
4. Selling price gross.
5. Expenses or other basis plus selling expenses (without reducing the basis of the LLC in the property due to IRC section 179 expenses deduction).
6. Allowable or allowable depreciation (excluding the deduction of expenses under Article 179 of the IRC).
7. Amount of IRC section 179 expense deduction (if any) remitted to each member for the property and LLC tax years in which the amount was remitted.
8. Indication of whether the disposition is due to an accident or theft.
9. If this is a forward sale, all the information required to complete Form FTB 3805E.

Supplementary information

The LLC may be required to report additional information not specifically requested in Exhibit K-1 (568) for each member separately. If the LLC has additional information not included on lines 1-20b, write “See Appendix” on line 20c, column (b) and column (d) and include an appendix with the details.

Members may be required to derive their prorated interest amount from the LLC's total gross proceeds less returns and allowances.

Gains or losses from property subject to Section 179 IRC Repossession must be reported in Schedule K-1 as supplemental information as reported on federal Form 4797.

The LLC must provide all of the following information in relation to a commercial real estate disposal where an IRC section 179 expense deduction has been claimed in previous years:

1. object description.
2. Date of purchase of the property.
3. Date the property was sold.
4. Members share in the gross sales price.
5. The members share the costs pro rata or on some other basis plus distribution costs (NOincluding the reduction of the company's base on the property due to the deduction of expenses under Article 179 of the IRC).
6. Members contribute pro rata to allowable or allowable depreciation (NOincluding the deduction of costs under Article 179 of the IRC).
7. The member's prorated portion of the IRC 179 expense deduction amount (if any) was remitted to the member during the LLC ownership and tax years in which the amount was remitted.
8. Indication of whether the disposition is due to an accident or theft.
9. If this is a forward sale, all the information required to complete Form FTB 3805E. The LLC must also separately report the member's prorated portion of all payments in future tax years. (Instalment payments received for installment sales made in previous tax years must be reported in the same way as in previous tax years.)

The alternative minimum taxable income does not include income, positive and negative adjustments, and preference items attributed to a trade or business of a qualifying taxpayer that has gross income less income and allowances for the tax year of less than $1,000,000 of the entire business or business . in which the taxpayer is the owner or shareholder. The LLC must report the member's prorated portion of total gross income on Exhibit K-1 (568), line 20c.

For the purposes of Section 17062(b)(4) of the R&TC, “total gross receipts less returns and value adjustments” means the sum of all of the following:

• The gross income of taxpayer-owned trades or businesses.
• Interest proportional to the gross income of trades or businesses owned by the taxpayer.
• The proportionate share of the gross receipts of the sewerage company in which the taxpayer has an interest.

“Total Gross Receipts” means the sum of gross receipts from commercial income production as defined in Section 25120(a) of the R&TC and gross receipts from non-commercial income production as defined in Section 25120(a) of the R&TC. Section 25120(d) of the R&TC.

Section 25120 of the R&TC was amended to add the definition of gross receipts. See R&TC Section 25120(f) or see for a full definition of “gross income”.ftb.ca.govand search25120.

For purposes of this Section, “Transfer Company” means a partnership (as defined in Section 17008 of the R&TC), an S Corporation, a Regulated Investment Entity (RIC), a Real Estate Investment Trust (REIT) and a REMIC. See R&TC Section 17062 for more information.

Also, on line 20c, show a statement that lists the following:

1. The distributing portion of each member's trading income allocated to an EZ, LAMBRA, MEA or TTA.
2. Each member's distributing share of the profits or losses of the company capital included in 1 above.

Analysis (Appendix K (568) only)

Line 21a and Line 21b

See federal instructions for Schedule K (1065), Net Income (Loss) Analysis.

Other Member Information (Schedule K-1 (568) only)

Table 1

Enter the member's share of non-commercial intangible income. Because the source of this income must be determined at the member level, do not report income from this category in column (e). If the income (losses) for an item of income is a combination of income (losses) from different subclasses (e.g., short-term and long-term capital gains), attach an additional statement that provides a breakdown of the income (losses) in each subclass . Subclass.

In Table 1, report non-business income from intangibles less related expenses.NOinclude expenses offset against non-business income from intangible assets in column (e).

Table 2

The LLC completes Table 2, Parts A through C for entity members and Table 2, Part C for all non-entity members. It is not necessary to fill out Table 2 for non-uniform individuals.

The final determination of the units is made at the member level. If the LLC and the member are joint, or if the LLC is unsure whether it is joint with the member, you must provide the information in Table 2.

Tel A.Enter the member's distributing portion of the LLC's business income. The member then adds this income to their own trading income and distributes the combined trading income.

"Business Income" is defined in Cal. Registration number. code, title. 18, Section 25120(a) as income derived from the ordinary course of the taxpayer's trade or business. Income from trade includes income from tangible and intangible assets where the acquisition, management and disposal of the assets is an integral part of the taxpayer's regular trade or business.

part BEnter the member's share of nonbusiness income from real estate and property in California. Since this income is from a California source, it must also be included in the appropriate row in column (e).

Non-business income is all income that is not business income.

Go awayEnter the payroll member's distribution share, ownership, and LLC sales factors.

The LLC will complete Table 2, Part C to report distributing ownership, payroll, and member sales percentage.Overall in California.

Members use Table 2, Part C to determine compliance with California ownership, salary and sales limits for doing business in California. For more information, see Business Process Overview.

Appendix K Federal/State Line References

The following table cross-references line items in Federal Annex K (1065) with corresponding line items in California Annex K (568). For more information, see the specific line instructions for Schedule K (568) and Schedule K-1 (568), Member Income Share, Deductions, Credits, etc., included in this booklet.

formulate 568
Codes for the main business activity

This list of major business activities and their associated codes is intended to classify a company by the nature of its business for ease of California Revenue and Taxation Code administration. These codes for key business activities are based on the North American industry classification system.

Use the list of activities and codes below to determine from which activity the Limited Liability Company (LLC) derives the highest percentage of its “Total Income”. Total income is defined as the sum of gross income or sales plus all other income. If the LLC purchases raw materials and supplies them to a subcontractor to manufacture the finished product, but retains ownership of the product, the LLC is considered the manufacturer and must use one of the manufacturing codes (311110-339900).

Once the primary business has been determined, entries must be made on Form 568 Item J. Enter a description of the LLC's primary product or service. For Business Entity Code, enter your 6-digit code choice from the list below.

Agriculture and forestry, fishing and hunting

agricultural production

Code

111100

Harvesting of grain and oilseeds

111210

Growing vegetables and melons (including potatoes and sweet potatoes)

111300

grow fruit and nuts

111400

Production of greenhouses, nurseries and floriculture

111900

Other crops (including tobacco, cotton, sugar cane, hay, peanuts, sugar beet and all other crops)

animal production

112111

livestock and agriculture

112112

cattle confinement

112120

Dairy cattle and milk production

112210

Pig Farming and Pig Farming

112300

Poultry and egg production

112400

Rearing sheep and goats

112510

Aquaculture (including shellfish and fish farms and hatcheries)

112900

Other animal production

Silviculture and logging

113110

Operation of the wood department

113210

Forest nurseries and collection of forest products

113310

get connected

Fishing, hunting and trapping

114110

fishing

114210

hunt and catch

Support activities for agriculture and forestry

115110

Agricultural production support activities (including cotton ginning, soil preparation, planting and cultivation)

115210

Activities to support animal production

115310

Forest support activities

Mining

211120

Crude Oil Extraction

211130

natural gas production

212110

extract coal

212200

metal ore mining

212310

quarrying and quarrying of stones

212320

Quarrying and extraction of sand, gravel, clay and ceramic and refractory minerals

212390

Mining and extraction of other non-metallic minerals

213110

Mining support activities

public utility services

221100

Power generation, transmission and distribution

221210

natural gas distribution

221300

Water, sewage and other systems

221500

Combination of gas and electric

construction

construction

236110

construction of residential buildings

236200

construction of non-residential buildings

heavy construction and civil engineering

237100

Build supply systems

237210

subdivision

237310

Construction of roads, roads and bridges

237990

Other buildings in civil engineering

Specialized trading company

238100

External foundation, framing and construction contractors (including carpentry, masonry, glazing, roofing and side framing)

238210

electricians

238220

Plumbing, heating and air conditioning installers

238290

Other construction machinery manufacturers

238300

Finishing contractors (including drywall, insulation, painting, siding, flooring, tiling and final joinery)

238900

Other specialized commercial contractors (including site preparation)

manufacturing

food production

311110

animal feed production

311200

Milling of grain and oilseeds

311300

Manufacture of sugar and confectionery

311400

Preservation of fruits and vegetables and production of specialty foods

311500

Production of dairy products

311610

Slaughtering and processing of animals

311710

Preparation and packaging of seafood

311800

Bakery, production of tortillas and dry noodles

311900

Manufacturing other foods (including coffee, tea, flavorings and spices)

Manufacture of beverages and tobacco products

312110

Production of soft drinks and ice cream

312120

breweries

312130

Bodegas

312140

distilleries

312200

Tobacco Manufacturing

Textile factories and textile mills

313000

The textile factory

314000

The textile factory

Garment Manufacturing

315100

garment factories

315210

Clothing cutting and sewing company

315220

Production of cut and sewn clothing for men and boys

315240

Manufacture of cut and sewn clothing for women, girls and babies

315280

Manufacture of other cut and sewn garments

315990

Garment Accessories and Other Apparel Mfg

Manufacture of leather and related products

316110

Tanning and finishing of hides and skins

316210

Shoe manufacturing (including rubber and plastic)

316990

Manufacture of other leather and related products

Manufacture of wood products

321110

Sawmills and wood protection

321210

Manufacture of veneer, plywood and wood-based materials

321900

Manufacture of other wood products

papermaking

322100

Pulp, paper and board mills

322200

manufacture of converted paper products

Printing and related support activities

323100

Printing and related support activities

Manufacture of petroleum and coal products

324110

Oil refineries (including integrated)

324120

Asphalt paving, roofing and manufacture of saturated materials

324190

Manufacture of other petroleum and coal products

chemical manufacturing

325100

basic chemical manufacturing

325200

Manufacture of resins, synthetic rubber and man-made and synthetic fibers and filaments

325300

Manufacture of pesticides, fertilizers and other agricultural chemicals

325410

Manufacture of medicines and medicines

325500

Manufacture of paints, varnishes and adhesives

325600

Manufacture of soaps, detergents and hygiene preparations

325900

Manufacture of other chemical products and preparations

Manufacture of plastic and rubber goods

326100

Manufacture of plastic products

326200

Manufacture of rubber products

Manufacture of non-metallic mineral products

327100

Manufacture of clay and refractory products

327210

Manufacture of glass and glass products

327300

Manufacture of cement and concrete products

327400

Manufacture of lime and gypsum products

327900

Manufacture of other non-metallic mineral products

Production of primary metals

331110

Iron and steel mills and ferroalloy manufacture

331200

Production of steel products from purchased steel

331310

Manufacture and processing of alumina and aluminum

331400

Production and processing of non-ferrous metals (except aluminum)

331500

foundries

Manufacture of metal products

332110

forging and stamping

332210

Manufacture of cutlery and hand tools

332300

Manufacture of metal and architectural structures

332400

Manufacture of boilers, tanks and shipping containers

332510

hardware manufacturing

332610

Manufacture of spring and wire products

332700

mechanical workshop; rotated product; and manufacture of screws, nuts and bolts

332810

Coating, engraving, heat treatment and related activities

332900

Manufacture of other metal products

machine manufacturing

333100

Manufacture of machines for agriculture, construction and mining

333200

Industrial mechanical engineering

333310

Production of machines for the trade and service industry

333410

Manufacture of commercial ventilation, heating, air conditioning and refrigeration equipment

333510

Manufacture of metallurgical machinery

333610

Manufacture of engines, turbines and power transmission equipment

333900

Manufacture of other multi-purpose machines

Manufacture of computer and electronic products

334110

Manufacture of computer systems and peripheral devices

334200

manufacture of communication devices

334310

Manufacture of audio and video equipment

334410

Manufacture of semiconductors and other electronic components

334500

Manufacture of navigation, measuring, electromedical and control instruments

334610

Manufacture and duplication of magnetic and optical media

Manufacture of electrical equipment, devices and components

335100

Manufacturer of electric lighting equipment

335200

Manufacture of large household appliances

335310

Manufacture of electrical appliances

335900

Manufacture of other electrical devices and components

Manufacture of means of transport

336100

Manufacture of motor vehicles

336210

Manufacture of superstructures and trailers for motor vehicles

336300

Manufacture of parts for motor vehicles

336410

Manufacture of aerospace parts and products

336510

Manufacture of rail vehicles

336610

Construction of boats and boats

336990

Manufacture of other transport equipment

Manufacture of furniture and related products

337000

Manufacture of furniture and related products

diverse manufacturing

339110

Manufacture of medical devices and accessories

339900

Other different manufacturers

Wholesale

Commercial wholesale, durable goods

423100

parts and accessories for automobiles and automobiles

423200

furniture and household items

423300

wood and other building materials

423400

Professional and commercial equipment and supplies

423500

Metal and Mineral (except Petroleum)

423600

household appliances and electrical and electronic articles

423700

Plumbing and heating hardware and equipment and supplies

423800

machines, equipment and accessories

423910

Articles and accessories for sport and leisure

423920

Articles and accessories for toys and hobbies

423930

recyclable materials

423940

Jewelry, watches, precious stones and precious metals

423990

Other durable goods

Commercial wholesale, consumables

424100

paper and paper products

424210

Medicines and trifles for pharmacists

424300

Clothing, parts and accessories

424400

Food and related products

424500

Raw materials for agricultural products

424600

chemicals and the like

424700

Oil and Derivatives

424800

Beer, wine and spirits

424910

agricultural supplies

424920

books, newspapers and magazines

424930

Accessories for flowers, nurseries and florists

424940

tobacco and tobacco products

424950

Paints, varnishes and accessories

424990

Other Consumables

Electronic Markets Wholesalers and Agents & Brokers

425110

Business-to-business e-marketplaces

425120

wholesale agents and brokers

retail trade

Dealers of motor vehicles and parts

441110

new car dealer

441120

used car dealer

441210

Recreational vehicle dealers

441222

ship trader

441228

Motorcycles, ATVs and all other automotive dealers

441300

Shops for auto parts, accessories and tires

Furniture and home accessories stores

442110

furniture store

442210

floors shops

442291

Shops for window treatments

442299

All other home furniture stores

Electronics and home appliance stores

443141

electronics stores

443142

Electronics stores (including audio, video, computer, and camera stores)

Sales of building materials and garden tools and accessories

444110

home centers

444120

Paint and wallpaper shops

444130

hardware stores

444190

Other builders' merchants

444200

Lawn and garden equipment and supplies stores

Grocery and beverage stores

445110

Supermarkets and other grocery stores (except convenience stores)

445120

convenience stores

445210

meat markets

445220

Fish and Seafood Markets

445230

fruit and vegetable markets

445291

Bakery shops

445292

Confectionery and dried fruit shops

445299

All other grocery stores

445310

Beer, wine and liquor stores

health and personal care stores

446110

pharmacies and drugstores

446120

Cosmetics, beauty and perfumery shops

446130

optical shops

446190

Other health and personal care stores

Gas station

447100

Gas stations (including gas-filled convenience stores)

Clothing and clothing accessories stores

448110

men's clothing stores

448120

Women's clothing stores

448130

Shops for children's and baby clothing

448140

Clothing stores for families

448150

Clothing accessory shops

448190

Other clothing stores

448210

shoe stores

448310

jewelers

448320

Luggage and leather goods shops

Sporting goods, hobby, books and music shops

451110

sporting goods stores

451120

Hobby, toy and game stores

451130

Sewing, sewing and patchwork shops

451140

Shops for musical instruments and accessories

451211

bookstores

451212

Newspaper vendors and kiosks

General merchandise stores

452200

department stores

452300

Convenience stores, including warehouse clubs and supercenters

Various retail stores

453110

florist

453210

office supplies and stationery stores

453220

Gift, novelty and souvenir shops

453310

thrift stores

453910

Pet shops and pet supplies

453920

art dealer

453930

Prefab House (Furniture) Dealers

453990

All other miscellaneous retail stores (including tobacco, candle and trophy stores)

Retailers without branches

454110

E-shops and mail order

454210

vending machine operators

454310

Fuel dealers (including heating oil and LPG)

454390

Other direct selling establishments (including door-to-door retailers, frozen food plan providers, party plan providers, and coffee break service providers)

Transport and Storage

Air, rail and water transport

481000

Air transport

482110

rail transport

483000

water transport

Truck transport

484110

General cargo transport, local

484120

General cargo transport, long distance

484200

Specialized cargo transport

passenger and land transport

485110

Urban Transportation Systems

485210

Intercity and highway transport

485310

Taxi and driving services

485320

Limousine Service

485410

School and staff transport by bus

485510

charter bus industry

485990

Other transit and land passenger transport

Pipeline-Transport

486000

Pipeline-Transport

Scenic and tourist transport

487000

Scenic and tourist transport

Transport Support Activities

488100

Air transport support activities

488210

Rail transport support activities

488300

Water transportation support activities

488410

motor vehicle trailer

488490

Other road transport support activities

488510

Arrangement of cargo transportation

488990

Other transport support activities

messengers and messengers

492110

Boten

492210

Local post office and local delivery

Safekeeping and Safekeeping

493100

Storage and warehousing (except for mini storage and self-storage rental companies)

Information

Publishing Industries (Except Internet)

511110

Newspaper editors

511120

newspaper publishers

511130

book publishers

511140

Directory and mailing list editors

511190

Other editors

511210

software publisher

film and sound recording industry

512100

Film and video industry (except video rental)

512200

sound recording industry

Broadcasting (except internet)

515100

radio and television

515210

Cable programs and other subscriptions

telecommunications

517000

Telecommunications (including paging, cellular, satellite, cable and other program distribution, resellers and other Internet and telecommunications service providers)

data processing services

518210

Data processing, hosting and related services

Other Information Services

519100

Other information services (including news syndicates, libraries, publications and webcasting)

financing and insurance

Custodian Credit Brokerage

522110

Business bank

522120

Sparinstitute

522130

credit unions

522190

Other brokerage of deposit loans

Credit brokerage without a deposit

522210

issuance of credit cards

522220

sales financing

522291

private loan

522292

Home loans (including mortgage bankers and originators)

522293

Financing International Trade

522294

Secondary Market Financing

522298

All other non-custodial credit intermediaries

Activities related to credit brokerage

522300

Credit brokerage activities (including credit brokerage, check cashing and money transfer)

Securities, commodity contracts and other financial investments and related activities

523110

investment banking and securities trading

523120

securities broker

523130

Trading in Commodity Contracts

523140

Brokers for commodity contracts

523210

stock and commodity exchanges

523900

Other financial investment activities (including portfolio management and investment advice)

Insurance companies and related activities

524140

Direct health, life and health insurance

524150

Direct insurance companies (except life, health and medical)

524210

insurance agencies and brokers

524290

Other insurance-related activities (including liability insurance and pension fund administration)

Mutual funds, trusts and other financial vehicles

525100

Insurance Funds and Employee Benefits

525910

Mutual Funds (Form 1120-RIC)

525920

Escrow, real estate and agency accounts

525990

Other financial vehicles (including mortgage REITs and closed-end mutual funds)

The “Bank Holding Company Offices” and “Other Holding Company Offices” are located atManagement of companies (holding companies).

Real Estate and Rental and Leasing

property

531110

Residential and Apartment Owners (including Equity REITs)

531120

Lessors of non-residential buildings (other than convenience stores) (including equity REITs)

531130

Lessors of mini-stores and self-storage units (including equity REITs)

531190

Owners of other real estate (including equity REITs)

531210

Offices of real estate agents and brokers

531310

property manager

531320

Offices for real estate appraisers

531390

Other activities related to real estate

leasing and leasing services

532100

leasing and leasing of automotive equipment

532210

Equipment and electronics rental

532281

Cloakroom rental and evening wear

532282

rental of video tapes and discs

532283

Rental of home health care equipment

532284

Rental of leisure items

532289

Rental of all other consumer goods

532310

General rental centers

532400

Leasing and leasing of commercial and industrial machinery and equipment

Lessors of non-financial intangible assets (excluding copyrighted works)

533110

Lessors of non-financial intangible assets (excluding copyrighted works)

Service professionals, scientists and technicians

legal advice

541110

chancellery

541190

Other legal services

Accounting, tax preparation, bookkeeping and payroll

541211

accounting offices

541213

Tax Preparation Services

541214

Payroll-Services

541219

Other Accounting Services

architecture, engineering and related services

541310

architectural services

541320

Landscape architectural services

541330

technical services

541340

writing services

541350

Construction supervision services

541360

Geophysical survey and mapping

541370

Topography and mapping services (other than geophysical)

541380

Testlabore

Specialized design services

541400

Specialized design services (including interior, industrial, graphic and fashion design)

design of computer systems and related services

541511

Custom computer programming

541512

design of computer systems

541513

IT facility management services

541519

Other IT-related services

Other professional, scientific and technical services

541600

Technical, scientific and management consulting

541700

Scientific research and development

541800

Advertising and Related Services

541910

market research and opinion polls

541920

Photographic Services

541930

translation and interpreting services

541940

Veterinary service

541990

All other freelance, scientific and technical services

Management of companies (holding companies)

551111

Bank Holding Offices

551112

Offices of other holding companies

administrative and support services, and waste management and remediation

administration and support services

561110

office management services

561210

facility support services

561300

job placement

561410

Document Preparation Services

561420

Call-Center

561430

Business service centers (including private mail centers and copiers)

561440

Debt collection agency

561450

credit bureaus

561490

Other business support services (including debt collection services, court reporting and shorthand services)

561500

Travel organization and booking services

561600

investigative and security services

561710

vermin control and extermination services

561720

cleaning services

561730

Landscaping Services

561740

Carpet and upholstery cleaning services

561790

Other services for buildings and apartments

561900

Other support services (including packaging and labeling services and organizers of congresses and fairs)

disposal and sanitation services

562000

disposal and sanitation services

educational services

611000

Educational Services (including schools, colleges and universities)

health and social assistance

Medical and dental practices

621111

Physician offices (except mental health specialists)

621112

Physician offices, mental health specialists

621210

dental practices

Offices of other health professionals

621310

chiropractic practices

621320

opticians offices

621330

Offices of mental health professionals (other than physicians)

621340

Practices of physiotherapists, occupational therapists, speech therapists and speech therapists

621391

podiatry practices

621399

Offices of all other various health professionals

Ambulatory Care Centers

621410

family planning centers

621420

Outpatient mental health and substance abuse centers

621491

HMO medical centers

621492

renal dialysis centers

621493

Independent outpatient emergency and surgical centers

621498

All other outpatient care facilities

Medical and diagnostic laboratories

621510

Medical and diagnostic laboratories

Home care

621610

Home care

Other outpatient health services

621900

Other ambulatory health services (including ambulance services and blood and organ banks)

hospitals

622000

hospitals

care and residential facilities

623000

care and residential facilities

Social support

624100

Individual and family service

624200

Community catering and housing, emergency services and other support services

624310

Vocational Rehabilitation Services

624410

Child Care Services

Arts, Entertainment and Recreation

Performing Arts, Spectator Sports and Related Industries

711100

Performing Arts Company

711210

Spectator sports (including sports clubs and circuits)

711300

Organizers of performing arts, sports and similar events

711410

Agents and managers of artists, athletes, entertainers and other public figures

711510

Freelance artists, writers and performers

Museums, historical sites and similar institutions

712100

Museums, historical sites and similar institutions

entertainment, gambling and leisure industries

713100

amusement parks and arcades

713200

game industries

713900

Other entertainment and recreation industries (including golf courses, ski resorts, marinas, gyms, and bowling centers)

accommodation and catering services

Accommodation

721110

Hotels (except casino hotels) and motels

721120

Casino-Hotels

721191

Guesthouses with breakfast

721199

All other accommodation for travelers

721210

RV sites and campsites

721310

Hostels and boarding houses, dormitories and worker camps

Food services and places to drink

722300

Specialty catering services (including caterers and food service providers)

722410

Drinking Fountain (Alcoholic Beverages)

722511

Full-Service-Restaurants

722513

Limited service restaurants

722514

cafeterias and buffets

722515

snacks and non-alcoholic beverages

Other Services

repair and maintenance

811110

Mechanical and electrical repair and maintenance of motor vehicles

811120

Body, paint, interior and glass repairs

811190

Other auto repair and maintenance (including oil change and greasing shops and car washes)

811210

Repair and maintenance of electronic and precision equipment

811310

Repair and maintenance of commercial and industrial machines and systems (except automotive and electronics)

811410

Repair and maintenance of household appliances and devices for house and garden

811420

Repair of furniture and upholstery

811430

Repair of shoes and leather goods

811490

Repair and maintenance of other personal and household items

Personal and laundry service

812111

hair salons

812112

beauty salons

812113

beauty salons

812190

Other personal care services (including diet and weight loss centers)

812210

Funeral Homes and Funeral Homes

812220

cemeteries and crematoria

812310

coin laundries and laundromat

812320

Dry cleaning and laundry service (except coin operated)

812330

Supply of bedding and uniforms

812910

Animal care services (except vet)

812920

photo edited

812930

Parking lots and garages

812990

All other personal services

Religious, donor, civic, professional and similar organizations

813000

Religious, charitable, civic, professional and similar organizations (including homeowners and homeowners associations)

How to get California tax information

Automated phone answering

Use our automated phone service to receive recorded answers to many of your California tax questions and to order tax forms and publications from California corporations. This service is available to touch tone callers in English and Spanish. Have paper and pen ready to take notes.

Telephone:

800-338-0505 from two United States
916-845-6500 from outside the United States

If you need an answer to any of the following questions, please call 800-338-0505, select Company Information, then FAQs. Follow the recorded instructions and enter the three-digit code when prompted.

750

How do I organize or register an LLC?

752

What tax forms do I use to register an LLC?

753

When is the annual tax payment due?

General Telephone Service

Phone support is available year-round from 7:00 a.m. to 5:00 p.m. M. at 5 p.m. From Monday to Friday except public holidays. Subject to opening hours.

Telephone:

800-852-5711 from two United States
916-845-6500 from outside the United States
California Relay Service
711 or 800-735-2929 for the hearing or speech impaired
Farm yard:
800-829-4933 call the IRS for federal tax matters

Assistance in Spanish:

Phone support is available year-round from 7:00 a.m. to 5:00 p.m. till 17 o clock. From Monday to Friday, except public holidays. Opening hours are subject to change.

Telephone:

800-852-5711 USA United States
916-845-6500 outside the US
California Relay Service
711 or 800-735-2929 for the hearing or speech impaired
Farm yard:
800-829-4933 call the IRS for federal tax matters

letters

If you write to us, make sure your letter includes your California SOS file number, your FEIN, your day and night phone numbers, and a copy of the notice. Send your letter to:

Post

FRANCHISE-FINANCE
PO Box 942857
SAKRAMENT CA 94257-0500

We will reply to your letter within ten weeks. In some cases we may need to call you for more information.NOInclude your letter with your California tax return.

Where to get tax forms and publications

Per Internet

You can download, view, and print California tax forms and publications atftb.ca.gov/formularios.

Our California Tax Services Center website provides California corporate tax information and forms for the BOE, CDTFA, EDD, FTB, and IRS atimpuestos.ca.gov.

You can also download, view and print out federal forms and publications atirs.gov.

for phone

Call our automated phone service at the number on this page and follow the recorded instructions.

By post

Please allow two weeks to receive your order. If you live outside of California, please allow three weeks to receive your order. Write to:

Post

TAX FORMS REQUEST UNIT
FRANCHISE-FINANCE
PO Box 307
RANCHO CORDOVA CA 95741-0307

Personal

Many post offices and libraries offer free California tax brochures during tax season.

Library and post office staff cannot provide tax information or assistance.

Your rights as a taxpayer

FTB's goals include ensuring that your rights are protected so that you have the utmost confidence in the integrity, efficiency and fairness of our government tax system. FTB 4058, the California Taxpayer Bill of Rights, provides information about your rights as a California taxpayer, the Taxpayer Advocacy Program, and how to request written guidance from the FTB as to whether a particular transaction is taxable. See “Obtaining Income Tax Forms and Publications” on this page. To order FTB 4058 by phone, enter code 943.