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LLCs organized under the laws of another state or

Mail Form 568 with payment to:

F Limited Liability Company

foreign country are required to register with the

FRANCHISE TAX BOARD

Tax and Fee

SOS before entering into intrastate business in

PO BOX 942857

California.

SACRAMENTO CA 94257-0601

Effective for taxable years beginning on or after

January 1, 2003, the definition of “limited liability

If the LLC is registered in California, but:

Make the check or money order payable to the

company” has been revised to exclude certain title

• Is not doing business in California; and

“Franchise Tax Board.” Write the LLC’s federal

holding companies that are tax exempt provided

• Does not have California source income,

employer identification number (FEIN), SOS file

that they are treated as partnerships or disregarded

number, and “2005 Form 568” on the check or

the LLC is still required to file Form 568. The

entities for tax purposes. As such they are not

money order.

LLC’s filing requirement will be satisfied by:

liable for the Annual LLC tax and fees.

Note: All checks or money orders must be

1. Completing Form 568 with all supplemental

Each series in a Delaware Series LLC is considered

payable in U.S. dollars and drawn against a U.S.

schedules;

a separate LLC and must file its own Form 568

financial institution.

2. Completing and attaching California Sched-

Limited Liability Company Return of Income and

ules K-1 (568) for members with California

Mail Form 568 without payment to:

pay its own separate LLC annual tax and fee if it is

addresses;

FRANCHISE TAX BOARD

registered or doing business in California.

3. Writing “SB 1106 Filing” in red at the top of

PO BOX 942857

Annual Limited Liability Company Tax

Form 568, Side 1; and

SACRAMENTO CA 94257-0600

LLCs are subject to an $800 annual tax if they are

4. Entering the total number of members in

Extensions

doing business in California or have articles of

Question J on Side 1 of the Form 568.

California does not require the filing of written

organization accepted, or a certificate of

An LLC may be classified for tax purposes as a

extensions. If the LLC cannot file its Form 568 by

registration issued by the SOS. The annual tax is

partnership, a corporation, or a disregarded

the return’s due date, the LLC is granted an

prepaid for the privilege of doing business in

entity. The LLC should file the appropriate

automatic six month extension.

California, and is due and payable on or before

California return. LLCs classified as a general

the 15th day of the 4th month after the beginning

However, the automatic extension does not

corporation file Form 100, California Corporation

of the taxable year. The annual tax must be paid

extend the time to pay the LLC fee or

Franchise or Income Tax Return. LLCs classified

for each taxable year until the appropriate papers

nonconsenting nonresident members’ tax.

as an S corporation file Form 100S, California

are filed. See General Information Q, Cancelling a

If the LLC is filing the return under extension, see

S Corporation Franchise or Income Tax Return.

Limited Liability Company, for more information.

form FTB 3537, Automatic Extension for LLCs,

LLCs classified as disregarded entities, see

Use form FTB 3522 to submit the $800 annual tax

included in this booklet, to submit the required

General Information S, Check-the-Box Regula-

payment. Make the check or money order payable

payments.

tions. The LLC must file the appropriate California

to the “Franchise Tax Board.” Write the LLC’s

return for its classification.

Penalty: To avoid late payment penalties for use

FEIN, SOS file number, and “2006 FTB 3522” on

tax, the limited liability company must report and

A husband and wife that own 100% of an LLC as

the check or money order.

pay the use tax with a timely filed franchise or

community property that is not treated as a

If the 15th day of the 4th month of an existing

income tax return.

corporation may elect for the LLC to be either a

foreign LLC’s taxable year has passed before the

disregarded entity or a partnership for tax

Annual Limited Liability Company Tax

existing foreign LLC commences business in

purposes.

If the 2005 annual tax of $800 was not paid on or

California or registers with the SOS, the annual

before the 15th day of the 4th month after the

An LLC that is an electing large partnership for

tax should be paid immediately after commencing

beginning of the taxable year (fiscal year) or

federal purposes and uses the federal

business or registering with the SOS.

April 15, 2005 (calendar year), the tax should be

Form 1065-B, U.S. Return of Income for Electing

Limited Liability Company Fee

sent using the 2005 form FTB 3522, LLC Tax

Large Partnerships, must still use Form 568.

In addition to the annual tax, every LLC must pay

Voucher. (Do not use the 2006 form FTB 3522

California law does not conform to the federal

a fee based on total annual income. The LLC fee

included in this booklet.)

electing large partnership provisions.

is due on or before the 15th day of the 4th month

Also see General Information G, Penalties and

Certain publicly traded partnerships treated as

after the close of the LLC’s taxable year. For

Interest, for the additional amount that is now

corporations under IRC Section 7704 must file

taxable years beginning on or after January 1,

due. To assure proper application of the tax

Form 100.

2005, use the following chart to compute the fee:

payment to the LLC account, do not send the

A resident member of an out-of-state LLC taxed

If total annual income from

The

$800 annual tax with Form 568.

as a partnership not required to file Form 568,

Form 568, Side 1, line 1 is:

fee is:

Note: The 2006 $800 annual tax is due on or

may be required to furnish a copy of federal

equal to or over –

but not over –

before the 15th day of the 4th month after the

Form 1065, U.S. Partnership Return of Income, to

$ 250,000

$ 499,999

900

beginning of the 2006 taxable year (fiscal year) or

substantiate the member’s share of LLC income

500,000

999,999

2,500

April 17, 2006 (calendar year). The payment is

or loss.

1,000,000

4,999,999

6,000

sent with form FTB 3522. Do not mail the $800

Nonregistered foreign LLCs that are not doing

5,000,000

and over

11,790

annual tax with Form 568.

business, but are deriving income from California

To determine the LLC fee see the Specific Line

Private Delivery Services

or filing to report an election on behalf of a

Instructions for line 1.

California law conforms to federal law regarding

California resident, file Form 565.

the use of certain designated private delivery

If the FTB determines multiple LLCs were formed

Nonregistered foreign LLCs that are members of

services to meet the “timely mailing as timely

for the primary purpose of reducing fees, the

an LLC doing business in California or general

filing/paying” rule for tax returns and payments.

LLC’s total income from all sources that are re-

partners in a limited partnership doing business

See the instructions for federal Form 1065 for a

portable to California could include the aggregate

in California are considered doing business in

list of designated delivery services. If a private

total income of all commonly controlled LLC

California and should file Form 568.

delivery service is used, address the return to:

members. “ Commonly controlled ” means control

E When and Where to File

of more than 50% of the capital interests or profit

FRANCHISE TAX BOARD

interests of the taxpayer and any other LLC or

SACRAMENTO CA 95827

An LLC must file Form 568, pay the LLC fee, and

partnership by the same persons.

Caution: Private delivery services cannot deliver

any nonconsenting members’ tax by the 15th day

Nonconsenting Nonresident Members’ Tax

items to PO boxes. If using one of these services

of the 4th month (fiscal year) or April 17, 2006

Every nonresident member must sign a form

to mail any item to the FTB, DO NOT use an FTB

(calendar year), following the close of its taxable

FTB 3832, Limited Liability Company Nonresident

PO box.

year.

Members’ Consent. The LLC returns the signed

form with Form 568. If a nonresident member fails

to sign form FTB 3832, the LLC is required to pay

tax on that member’s distributive share of income

Page 4 Form 568 Booklet (REV 02-06)

Instructions For Form 568 - Limited Liability Company Return Of Income - State Of California Franchise Tax Board - 2005 Page 4

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