Form Ftb 3556 Llc Meo Bets Limited Liability Company Filing Information (Page 3 of 5) in pdf

LLCs that own a disregarded LLC must report the

Example 1

disregarded LLC items on Schedules B and K. Do not

separately enter any amounts from a membership interest

Paul is a California resident and a member of a

in a disregarded LLC on the LLC Income Worksheet.

Nevada LLC. The Nevada LLC owns property in

Nevada. The LLC hires a Nevada management

California Schedule K-1 (568), Member's Shares of

company to collect rents and provide maintenance.

Income, Deductions, Credits, etc. An LLC that elects

Paul has the right to hire and fire the management

classification as a partnership for tax purposes uses this

company. Paul occasionally has telephone

schedule to report individual member's shares of t the LLC's

discussions with the management company

income, deductions, credits, etc. We accept this document

regarding the property. Paul is ultimately responsible

in a paperless format via CD, diskette, or cartridge. For

for the property, oversees the management company,

information about the Paperless Schedule K-1 Program,

and, therefore, is conducting business in California on

go to our website at ftb.ca.gov and search for K-1.

behalf of the LLC. The Nevada LLC is considered

doing business in California. It must file Form 568.

LLCs classified as corporations, should refer to FTB

Publication 1060, Guide for Corporations Starting Business

Example 2

in California. This publication provides information for

corporate filings.

Rachel is a California resident and a member of an

Oregon LLC. The Oregon LLC has a retail store in

Converted Business Entities Information

Oregon. Rachel uses a California address for the LLC

tax filings and a California accountant to prepare the

If any type of business entity converts to an LLC during

LLC tax returns. Rachel, therefore, is conducting

the current year, it generally will have a tax liability and

business in California on behalf of the LLC. The

return filing requirement as both the previous business

Oregon LLC is considered doing business in

entity and the new LLC.

California. It must file Form 568.

Nonresident Members

Example 3

An LLC must file an FTB Form 3832, Limited Liability

Sara is a California resident and a member of a

Company Nonresident Members' Consent, with its Form

Texas LLC. The Texas LLC receives royalties from

568. The form 3832 must have each nonresident members'

Texas oil wells. Sara maintains a California business

signed consent to California's jurisdiction to tax the

bank account and secures financing in California for

members' distributive share of the LLC's income it attributes

the LLC's Texas investments. Sara is conducting

to California sources. The nonresident member of a single

business in California on behalf of the LLC. It must

member LLC consents to California tax jurisdiction by

file Form 568.

signing the Single Member LLC Information and Consent on

Example 4

Side 1 of Form 568.

John is a member of an Arizona LLC. The Arizona

If the LLC fails to obtain the signature of any nonresident

LLC operates a repair shop in Arizona. John moved

member, it must pay tax on each of its nonconsenting

to California and no longer works as a mechanic for

nonresident members' distributive share of income at the

the LLC. John is still responsible for some of the

members' highest marginal tax rate. The tax is due at the

general and financial administration of the business,

time for filing Form 568, without extensions.

including bill payment and bookkeeping. John is,

therefore, conducting business in California on behalf

Use Schedule T, Nonconsenting Nonresident Members'

of the LLC. The Arizona LLC is doing business in

Tax Liability, to calculate and report nonconsenting

California. It must file Form 568.

nonresident members' taxes the LLC must pay. Completing

FTB Form 3832, Single Member LLC Information and Consent,

Tiered Entity

or Schedule T does not safisfy the consenting member's

California filing requirement.

A tiered entity is considered doing business in

California if one of the following applies:

Refer to the Form 568 instructions for Schedule T for

additional information.

It is a nonregistered foreign LLC that is a

Doing Business in California

member of an LLC doing business in

California.

The definition of doing business is "actively engaging in

It is a general partner in a limited partnership

any transaction for the purpose of financial or pecuniary

that is doing business in California.

gain or profit" (R&TC Section 23101). Regardless of

Tiered entities should file Form 568.

where the LLC primarily conducts business, if any of

its members, managers, or other agents conduct

business in California on behalf of the LLC, the LLC

is considered to be doing business in California.

FTB 3556 LLC MEO BETS (REV 07-2008) SIDE 3

Form Ftb 3556 Llc Meo Bets Limited Liability Company Filing Information Page 3

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