Question

LLC in a different state

Forum|Forum|2 years ago
March 18, 2024
1 reply
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Hi - I created an LLC in TX to manage my rental property in TX but I live in CA. It was single member LLC when incorporated but now it's a partnership LLC. I have a few questions:

1. I changed to partnership LLC in 2024. Should I file my taxes for 2023 as single member LLC or partnership LLC?

2. There is no option in TT to select the state where it was incorporated (TX in my case). LLC formation document has my CA address in it. TT is treating this LLC as it was incorporated in CA.

3. Do I have to file CA Schedule K-1 form 568 and 562? I don't have any rental income from 2023, only LLC incorporation expense.

Thanks

TurboTax Home & Biz Windows

PatriciaV

1. Report the 2023 activity for your SMLLC on Schedule C of your personal return. The change in entity type didn't occur until 2024.

2. For a SMLLC, the state of incorporation isn't relevant. But be sure you entered a Texas business address for Schedule C. If you have income sourced in Texas, you may need to file a Texas Franchise tax report. Otherwise, the activity is reported your resident state income tax return.

3. California Form 568 is filed if your LLC is registered in California, even if it isn't actively doing business in California or doesn't have a California source of income.

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C

causerAuthor

Thank you, @PatriciaV. I have a follow-up question.

2. For a SMLLC, the state of incorporation isn't relevant. But be sure you entered a Texas business address for Schedule C. If you have income sourced in Texas, you may need to file a Texas Franchise tax report. Otherwise, the activity is reported your resident state income tax return.

Question: Can I enter the LLC's registered agent address in TX as the company address, even though the company address is my home address in CA?

3. California Form 568 is filed if your LLC is registered in California, even if it isn't actively doing business in California or doesn't have a California source of income.

Question: Since my LLC is not registered in CA then how can I avoid entering the information for CA form 568 and 562?

PatriciaV

Yes, you can use the registered agent's contact info, with their permission.

When you work through the California business section, do not check the box for "Single Member LLC." Form 568 will not be included. (Interpret this as "do you have a California SMLLC?")

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