Ca Form 568 – Fill Out and Use This PDF

The California Form 568, also known as the Return of Income, is a critical tax document for limited liability companies (LLCs) operating within the state. It details the LLC's income, deductions, credits, and taxes due for a specific tax year. This form is essential for LLCs to comply with California tax obligations, thereby avoiding penalties and maintaining good standing in the state. For those ready to tackle their tax responsibilities, guidance on how to fill out this form effectively can be accessed by clicking the button below.

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Ca Form 568 PDF Details

In the dynamic landscape of tax obligations for limited liability companies (LLCs) operating within California, the California Form 568 stands out as a crucial document that outlines the Return of Income for LLCs for the tax year 2021. This comprehensive form captures various aspects of an LLC's financial activities, from the basic identifiers such as the LLC's name and California Secretary of State file number to more detailed financial information like total income, deductions, and taxes due. Specifically designed for LLCs classified as partnerships or disregarded entities, Form 568's structure facilitates the accurate reporting of an LLC's income, deductions, credits, and fees. Furthermore, it addresses the taxation requirements for non-consenting nonresident members and includes schedules for cost of goods sold and members’ shares of income, deductions, credits, etc. Alongside these, the form also addresses distinctive situations like changes in ownership or control that may affect the LLC’s tax obligations. Additionally, it delves into aspects such as the application of various accounting methods, indicating the LLC's chosen approach to financial reporting. This form not only embodies the state's tax requirements but also guides LLCs through a systematic disclosure of their taxable operations within California, thereby underscoring the importance of compliance with state tax regulations.

Question	Answer
Form Name	Ca Form 568
Form Length	7 pages
Fillable?	No
Fillable fields	0
Avg. time to fill out	1 min 45 sec
Other names	form 568 california 2020, form 568 return, ca form 568 instructions 2020, form 568 california franchise tax board

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TAXABLE YEAR	Limited Liability Company		CALIFORNIA FORM

2021		568
	Return of Income

For calendar year 2021 or fiscal year beginning

(m m / d d / y y y y)

and ending

(m m / d d / y y y y)

Limited liability company name (type or print)

California Secretary of State (SOS) file number

•

Additional information

FEIN

•

Street address (suite, room, PO box)

PMB no.

City (If the LLC has a foreign address, see instructions.)

State

ZIP code

Foreign country name

Foreign province/state/county

Foreign postal code

E Check accounting method

F Date business started in CA

G Enter total assets at end of year.

• (1) □Cash (2) □Accrual

(3) □Other (attach explanation) •

(m m / d d / y y y y)

See instructions.

•

H Check the applicable box	□FINAL RETURN (3) □Amended return	(4) □Protective claim
• (1) □Initial return (2)

I(1) During this taxable year, did another person or legal entity acquire control or majority ownership (more than a 50% interest) of this LLC or any legal entity in which the LLC holds a controlling or majority interest that owned California real property

(i.e., land, buildings), leased such property for a term of 35 years or more, or leased such property from a government	• □ Yes
agency for any term?	• □ Yes
(2) During this taxable year, did this LLC acquire control or majority ownership (more than a 50% interest) in another legal	• □ Yes
entity that owned California real property (i.e., land, buildings), leased such property for a term of 35 years or more,
or leased such property from a government agency for any term?
(3) During this taxable year, has more than 50% of the LLC’s ownership interests cumulatively transferred in one or more
transactions after an interest in California real property (i.e., land, buildings) was transferred to it that was excluded	• □ Yes
from property tax reassessment under Revenue and Taxation Code Section 62(a)(2) and it was not reported on a
previous year’s tax return?
(Yes requires filing of statement, penalties may apply– see instructions.)

□ No

Enclose, but do not staple, any payment.

Complete Schedule IW, LLC Income Worksheet (on Side 7) first to determine line 1.

1	Total income from Schedule IW, Limited Liability Company Income Worksheet. See instructions	•
2	Limited Liability Company fee. See instructions	•
3	2021 annual Limited Liability Company tax. See instructions	•
4	Pass-through entity elective tax. See instructions	•
5	Nonconsenting nonresident members’ tax liability from Schedule T (Side 4)	•
6	Partnership level tax. If IRS concluded a centralized audit for this year, see instructions. If not, leave blank	•
7	Total tax and fee. Add line 2, line 3, line 4, line 5, and line 6	•
8	Amount paid with form FTB 3537 and 2021 form FTB 3522 and form FTB 3536	•
9	Amount paid with form FTB 3893	•
10	Overpayment from prior year allowed as a credit	•
11	Withholding (Form 592-B and/or 593)	•
12	Total payments. Add line 8, line 9, line 10 and line 11	•
13	Use tax. This is not a total line. See instructions	•
14	Payments balance. If line 12 is more than line 13, subtract line 13 from line 12	•
15	Use tax balance. If line 13 is more than line 12, subtract line 12 from line 13	•
16	Tax and fee due. If line 7 is more than line 14, subtract line 14 from line 7	•
17	Overpayment. If line 14 is more than line 7, subtract line 7 from line 14	•

	Whole dollars only
1		00
2		00
3		00
4		00
5		00
6		00
7		00
8		00
9		00
10		00
11		00
12		00
13		00
14		00
15		00
16		00
17		00

3671213

Form 568 2021 Side 1



								Whole dollars only
					. . . . . . •
		18 Amount of line 17 to be credited to 2022 tax or fee	. . .	. . .	. . . . . . •	18							00
		19 Refund. If the total of line 18 is less than line 17, subtract the total from line 17	• 19								. 00
					. . . . . . •
		20 Penalties and interest. See instructions	. . .	. . .	. . . . . . •	20							00
		21 Total amount due. Add line 15, line 16, line 18, and line 20, then subtract line 17 from the result. .	• 21								. 00

J Principal business activity code (Do not leave blank)			. . . . . .		. . . . . . . . .	. .	•
	Business activity ________________________ Product or service _____________________________
K Enter the maximum number of members in the LLC at any time during the year. For multiple member LLCs, attach a							•

	California Schedule K-1 (568) for each of these members		. . . . . .		. . . . . . . . .	. .
L	Is this LLC an investment partnership? See General Information O		. . . . . .		. . . . . . . . .	. .	• □ Yes				□ No
M	(1)	Is this LLC apportioning or allocating income to California using Schedule R?	. . . . . .		. . . . . . . . .	. .	• □ Yes				□ No
	(2)	If “No,” was this LLC registered in California without earning any income sourced in this state during the taxable year? .				. .	•		□ Yes		□ No
N Was there a distribution of property or a transfer (for example, by sale or death) of an LLC interest during the taxable year? .						. .	• □ Yes				□ No
P	(1)	Does the LLC have any foreign (non-U.S.) nonresident members?	. . . . . .		. . . . . . . . .	. .	• □ Yes				□ No
	(2)	Does the LLC have any domestic (non-foreign) nonresident members?	. . . . . .		. . . . . . . . .	. .	• □ Yes				□ No
	(3)	Were Form 592, Form 592-A, Form 592-B, Form 592-F, and Form 592-PTE filed for these members?	. . . . . .		. . . . . . . . .	. .	• □ Yes				□ No
Q Are any members in this LLC also LLCs or partnerships?			. . . . . .		. . . . . . . . .	. .	• □ Yes				□ No
R	Is this LLC under audit by the IRS or has it been audited in a prior year?		. . . . . .		. . . . . . . . .	. .	• □ Yes				□ No
S	Is this LLC a member or partner in another multiple member LLC or partnership?		. . . . . .		. . . . . . . . .	. .	• □ Yes				□ No
	If “Yes,” complete Schedule EO, Part I.								□ Yes □ No
T	Is this LLC a publicly traded partnership as defined in IRC Section 469(k)(2)?		. . . . . .		. . . . . . . . .	. .			□ Yes □ No
U	(1)	Is this LLC a business entity disregarded for tax purposes?	. . . . . .		. . . . . . . . .	. .	• □ Yes				□ No
	(2)	If “Yes,” see instructions and complete Side 1, Side 2, Side 3, Schedule B, Side 5, and Side 7, if applicable. Are there					• □ Yes □ No
		credits or credit carryovers attributable to the disregarded entity?	. . . . . .		. . . . . . . . .	. .	• □ Yes □ No
	(3)	If “Yes” to U(1), does the disregarded entity have total income derived from or attributable to California that is less than							□		□
	(3)
		the LLC’s total income from all sources?	. . . . . .		. . . . . . . . .	. .				Yes		No
V	Has the LLC included a Reportable Transaction, or Listed Transaction within this return?						• □ Yes □ No
	(See instructions for definitions). If “Yes,” complete and attach federal Form 8886 for each transaction. . .		. . . . . .		. . . . . . . . .	. .	• □ Yes □ No
W Did this LLC file the Federal Schedule M-3 (federal Form 1065)?			. . . . . .		. . . . . . . . .	. .	• □ Yes				□ No
X	Is this LLC a direct owner of an entity that filed a federal Schedule M-3?		. . . . . .		. . . . . . . . .	. .	• □ Yes				□ No
Y	Does the LLC have a beneficial interest in a trust or is it a grantor of a Trust?		. . . . . .		. . . . . . . . .	. .	• □ Yes				□ No
	If “Yes,” attach schedule of trusts and federal identification numbers.								□		□
Z	Does this LLC own an interest in a business entity disregarded for tax purposes?						•		□	Yes	□	No
Z			. . . . . .		. . . . . . . . .	. .	•			Yes		No
	If “Yes,” complete Schedule EO, Part II.						• □ Yes □ No
AA Is any member of the LLC related (as defined in IRC Section 267(c)(4)) to any other member of the LLC?			. . . . . .		. . . . . . . . .	. .	• □ Yes □ No
BB Is any member of the LLC a trust for the benefit of any person related (as defined in IRC Section 267(c)(4))							• □ Yes □ No
	to any other member?		. . . . . .		. . . . . . . . .	. .	• □ Yes □ No

(continued on Side 3)

Side 2 Form 568 2021

3672213

(continued from Side 2)

□

Yes

□

(1)

Is the LLC deferring any income from the disposition of assets? (see instructions) .

. . . . . . . .

. . . . .

. . . . . . .

. . . . •

(2)

. . . . . . . .If “Yes,” enter the year of asset disposition

. . . . .

. . . . . . . . . . . . . . . . . . .

. . . . . . . .

. . . . .

. . . . . . .

. . . . •

□

Is the LLC reporting previously deferred Income from:

•

Installment Sale

•

IRC §1031 •

IRC §1033

•

(see instructions) . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other

EE “Doing business as” name. See instructions:

. . . . .

• _____________________________________________________________________

(1)

Has this LLC operated as another entity type such as a Corporation, S Corporation, General Partnership,

□

Limited Partnership, or Sole Proprietorship in the previous five (5) years?

. . . . . . . .

. . . . .

. . . . . . .

. . . . •

Yes

(2)

If “Yes”, provide prior FEIN(s) if different, business name(s), and entity type(s) for prior returns

filed with the FTB and/or IRS (see instructions): _________________________________________________________________________________

(1)

□

Yes

□

Has this LLC previously operated outside California?

. . . . .

. . . . . . . . . . . . . . . . . . .

. . . . . . . .

. . . . .

. . . . . . .

. . . . •

□

(2)

□

Yes

Is this the first year of doing business in California?.

. . . . .

. . . . . . . . . . . . . . . . . . .

. . . . . . . .

. . . . .

. . . . . . .

. . . . •

□

HH Is the LLC a section 721(c) partnership, as defined in Treasury Regulations Section 1.721(c)-1T(b)(14)?

□

Yes

At any time during the tax year, were there any transfers between the LLC and its members subject to the

. . . . . . □ Yes

□ No

disclosure requirements of Regulations section 1.707-8?

. . . . .

. . . . . . . . . . . . . . . . . . .

. . . . . . . .

. . . . .

. . . . . . .

Check if the LLC: (1)

• Aggregated activities for IRC Section 465 at-risk purposes

(2)

• Grouped activities for IRC Section 469 passive activity purposes

□

KK (1) Has this business entity previously filed an unclaimed property Holder Remit Report with the State Controller’s Office?

Yes

. . . . .•

(2) If “Yes,” when was the last report filed? (mm/dd/yyyy) • ________________ (3) Amount last remitted ◾ $____________________ . _______

Single Member LLC Information and Consent — Complete only if the LLC is disregarded.

• Federal TIN/SSN

Sole Owner’s name (as shown on owner’s return)

FEIN/CA Corp no./CA SOS File no.

•

Street Address, City, State, and ZIP Code

•What type of entity is the ultimate owner of this SMLLC? See instructions. Check only one box:

• (1) Individual

• (2) C Corporation

• (3) Pass-Through (S corporation, partnership, LLC classified as a partnership)

•(4) Estate/Trust • (5) Exempt Organization

Member’s Consent Statement: I consent to the jurisdiction of the State of California to tax my LLC income and agree to file returns and pay tax as may be required by the Franchise Tax Board.

Signature ▶			Date
	Our privacy notice can be found in annual tax booklets or online. Go to ftb.ca.gov/privacy to learn about our privacy policy statement, or go to ftb.ca.gov/forms and search for
	1131 to locate FTB 1131 EN-SP, Franchise Tax Board Privacy Notice on Collection. To request this notice by mail, call 800.338.0505 and enter form code 948 when instructed.
	Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true,
	correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Sign	Signature		Date
Sign	of authorized		Date
Here	member or			Telephone
	manager ▶			•
	Authorized member or manager’s email address (optional)			•
	Paid	Date	Check if	PTIN
	preparer’s		Check if
	preparer’s		self-employed •	•
Paid	signature ▶		self-employed •	•
Preparer’s				Firm’s FEIN
Use Only	Firm’s name (or yours,			•
	if self-employed) ▶			•
	if self-employed) ▶			Telephone
	and address			Telephone
				•
	May the FTB discuss this return with the preparer shown above (see instructions)?. . . . . . . . . . . • • Yes • No

3673213

Form 568 2021 Side 3

Schedule A Cost of Goods Sold

1	. . . . . . . . . . . . . . . . .Inventory at beginning of year			. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	. . . . . . . . . . . . . . . . . .	1		00
2	Purchases less cost of items withdrawn for personal use				. . . . . . . . . . . . . . . . . .	2		00
3	Cost of labor		. . . . . . . . . . . . . . . . . . . . . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	. . . . . . . . . . . . . . . . . .	3		00
4	Additional IRC Section 263A costs. Attach schedule			. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	. . . . . . . . . . . . . . . . . .	4		00
5	Other costs. Attach schedule			. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	. . . . . . . . . . . . . . . . . .	5		00
6	Total. Add line 1 through line 5			. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	. . . . . . . . . . . . . . . . . .	6		00
7	Inventory at end of year			. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	. . . . . . . . . . . . . . . . . .	7		00
8	Cost of goods sold. Subtract line 7 from line 6. Enter here and on Schedule B, line 2				. . . . . . . . . . . . . . . . . .	8		00
9	a	Check all methods used for valuing closing inventory:
		(1) • Cost	(2) • Lower of cost or market as described in Treas. Reg. Section 1.471-4		(3) • Write down of “subnormal” goods as
		described in Treas. Reg. Section 1.471-2(c)		(4) • Other. Specify method used and attach explanation ___________________________
	b	Check this box if the LIFO inventory method was adopted this taxable year for any goods. If checked, attach federal Form 970 .					. . . . . . . . . •
	c	Do the rules of IRC Section 263A (with respect to property produced or acquired for resale) apply to the LLC?					. . . . . . . . . • Yes • No

dWas there any change (other than for IRC Section 263A purposes) in determining quantities, cost, or valuations between opening

and closing inventory? If “Yes,” attach explanation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • Yes • No

Schedule B Income and Deductions

Caution: Include only trade or business income and expenses on line 1a through line 22 below. See the instructions for more information.

Schedule T Nonconsenting Nonresident Members’ Tax Liability. Attach additional sheets if necessary.

•		1c		00
•		1c		00
•		2		00
•		3		00
•		4		00
•		5		00
•		6		00
•		7		00
•		8		00
•		9		00
•		10		00
•		11		00
•		12		00
•		13		00
•		14		00
•		15		00
•		16		00
•		17c		00
		18		00
		19		00
•		20		00
•		21		00
•		22		00
•		23		00

(a)

Member’s name

(b)

SSN, ITIN,

or FEIN

(c)

Distributive

share of income

(d)

Tax

rate

(e)

Member’s

total tax due

(see instructions)

(f)

Amount withheld by this LLC on this member – reported on Form 592-B

(g)

Member’s

net tax due

Total the amount of tax due. Enter the total here and on Side 1, line 4. If less than zero enter -0-

________________

Side 4 Form 568 2021

3674213

Schedule K Members’ Shares of Income, Deductions, Credits, etc.

Income (Loss)

Deductions

Analysis Other Information Alternative Minimum Credits Tax (AMT) Items

					(a)									(b)		(c)			(d)
			Distributive share items										Amounts from			California	Total amounts using
											1	• federal K (1065)			adjustments		•	California law
1	Ordinary income (loss) from trade or business activities									.	1	• federal K (1065)					•
2	Net income (loss) from rental real estate activities. Attach federal Form 8825										2						•
3	a	Gross income (loss) from other rental activities						. . . . . . . . . . . . . .	. . . .	.	3a						•
	b Less expenses. Attach schedule. . .						. . . . . . . . . .	. . . . . . . . . . . . . .	. . . .	.	3b
	c Net income (loss) from other rental activities. Subtract line 3b										3c						•
		from line 3a	. . . . . .	. . . . . . . .		. . . .	. . . . . . . . . . .	. . . . . . . . . . . . . .	. . . .	.	3c						•
4	Guaranteed payments			a Services. .			. . . . . . . . . .	. . . . . . . . . . . . . .	. . . .	.	4a
	b	Capital			. . . .	. . . .	. . . . . . . . . .	. . . . . . . . . . . . . .	. . . .	.	4b
	c	Total			. . . .	. . . .	. . . . . . . . . .	. . . . . . . . . . . . . .	. . . .	.	4c						•
5	Interest income		. . . . . . . . . .		. . . .	. . . .	. . . . . . . . . .	. . . . . . . . . . . . . .	. . . .	.	5						•
6	Dividends				. . . .	. . . .	. . . . . . . . . .	. . . . . . . . . . . . . .	. . . .	.	6						•
7	Royalties				. . . .	. . . .	. . . . . . . . . .	. . . . . . . . . . . . . .	. . . .	.	7						•
8	Net short-term capital gain (loss). Attach Schedule D (568)									.	8						•
9	Net long-term capital gain (loss). Attach Schedule D (568)									.	9						•
10	a	Total gain under IRC Section 1231 (other than due to casualty or theft) .									10a						•
	b Total loss under IRC Section 1231 (other than due to casualty or theft) .										10b						•
11	a	Other portfolio income (loss). Attach schedule .						. . . . . . . . . . . . . .	. . . .	.	11a						•
	b Total other income. Attach schedule							. . . . . . . . . . . . . .	. . . .	.	11b						•
	c Total other loss. Attach schedule . .						. . . . . . . . . .	. . . . . . . . . . . . . .	. . . .	.	11c
12	Expense deduction for recovery property (IRC Section 179). Attach schedule										12
13	a	Charitable contributions. See instructions. Attach schedule								.	13a
	b	Investment interest expense						. . . . . . . . . . . . . .	. . . .	.	13b						•
	c	1 Total expenditures to which IRC Section 59(e) election may apply .								.	13c1
		2 Type of expenditures									13c2
	d Deductions related to portfolio income							. . . . . . . . . . . . . .	. . . .	.	13d
	e	Other deductions. Attach schedule.					. . . . . . . . . .	. . . . . . . . . . . . . .	. . . .	.	13e						•
15	a	. . . . .Withholding on LLC allocated to all members						. . . . . . . . . . . . . . .	. . . .	.	15a
	b	Low-income housing credit						. . . . . . . . . . . . . .	. . . .	.	15b
	c Credits other than the credit shown on line 15b related to rental real										15c
		estate activities. Attach schedule . .					. . . . . . . . . .	. . . . . . . . . . . . . .	. . . .	.	15c
	d Credits related to other rental activities. Attach schedule									.	15d
	e Nonconsenting nonresident members’ tax paid by LLC									.	15e
	f Other credits. Attach schedule . . . .						. . . . . . . . . .	. . . . . . . . . . . . . .	. . . .	.	15f						•
17	a	. . . . .Depreciation adjustment on property placed in service after 1986								.	17a
	b Adjusted gain or loss							. . . . . . . . . . . . . .	. . . .	.	17b
	c Depletion (other than oil and gas) .						. . . . . . . . . .	. . . . . . . . . . . . . .	. . . .	.	17c
	d Gross income from oil, gas, and geothermal properties									.	17d
	e Deductions allocable to oil, gas, and geothermal properties									.	17e
	f Other alternative minimum tax items. Attach schedule									.	17f
18	a	Tax-exempt interest income						. . . . . . . . . . . . . .	. . . .	.	18a
	b	Other tax-exempt income						. . . . . . . . . . . . . .	. . . .	.	18b						•
	c	Nondeductible expenses						. . . . . . . . . . . . . .	. . . .	.	18c
19	a	Distributions of money (cash and marketable securities)								.	19a						•
	b Distribution of property other than money							. . . . . . . . . . . . . .	. . . .	.	19b						•
20	a	Investment income		. . . .	. . . .	. . . .	. . . . . . . . . .	. . . . . . . . . . . . . .	. . . .	.	20a
	b	Investment expenses						. . . . . . . . . . . . . .	. . . .	.	20b
	c Other information. See instructions							. . . . . . . . . . . . . .	. . . .	.	20c
21	a	Total distributive income/payment items. Combine lines 1, 2, 3c
		and 4c through 11c. From the result, subtract the sum of lines 12															•
		through 13e	. . . . . . . . . .		. . . .	. . . .	. . . . . . . . . .	. . . . . . . . . . . . . .	. . . .	.	21a						•
	b	Analysis of		(a)			(b) Individual				(c)			(d)		(e)			(f)
		members:	Corporate				i. Active	ii. Passive		Partnership				Exempt Organization		Nominee/Other			LLC
			Corporate				i. Active	ii. Passive		Partnership				Exempt Organization		Nominee/Other			LLC
		Members

3675213

Form 568 2021 (REV 02-22) Side 5

Schedule L Balance Sheets. See instructions before completing Schedules L, M-1, and M-2.

				Beginning of taxable year			End of taxable year
		Assets		(a)	(b)	(c)		(d)
1	Cash
2	. . . . . . . . . . .a Trade notes and accounts receivable
	b	Less allowance for bad debts	(	)		(	)
3	Inventories							•
4	. . . . . . . . . . . . . . . . . . . .U.S. government obligations
5	. . . . . . . . . . . . . . . . . . . . . . . . .Tax-exempt securities
6	Other current assets. Attach schedule							•
7	a	Loans to partners
	. . . . . . . . . . . . . . .b Mortgage and real estate loans
8	Other investments. Attach schedule							•
9	. . . . . . . . .a Buildings and other depreciable assets
	b	Less accumulated depreciation	(	)	•	(	)	•
10	a	Depletable assets
	b	Less accumulated depletion	(	)		(	)
11	Land (net of any amortization)				•			•
12	. . . . . . . . . . .a Intangible assets (amortizable only)
	b	Less accumulated amortization	(	)		(	)
13	Other assets. Attach schedule							•
14	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Total assets
	Liabilities and Capital
15	Accounts payable							•
16	Mortgages, notes, bonds payable in less than 1 year. .							•
17	. . . . . . . . . . .Other current liabilities. Attach schedule
18	All nonrecourse loans				•			•
19	a	Loans from partners
	b Mortgages, notes, bonds payable in 1 year or more				•			•
20	Other liabilities. Attach schedule							•
21	Members’ capital accounts				•			•
22	. . . . . . . . . . . . . . . . . . . . . .Total liabilities and capital

Schedule M-1 Reconciliation of Income (Loss) per Books With Income (Loss) per Return. Use total amount under California law. See instructions.

1	. .Net income (loss) per books	. . . . . . . . . . . . . . .	.
2	Income included on Schedule K, line 1 through line 11c		•
3	not recorded on books this year. Itemize		•
3	. . . . . .Guaranteed payments (other than health insurance)		.
4	Expenses recorded on books this year not included on
	Schedule K, line 1 through line 13e. Itemize:
	a Depreciation	$ ______________
	b Travel and entertainment	$ ______________
	c Annual LLC tax	$ ______________
	d Other	$ ______________
5	. .e Total. Add line 4a through line 4d.	. . . . . . . . . . . . . . .	•
5	. .Total of line 1 through line 4e	. . . . . . . . . . . . . . .	.

6Income recorded on books this year not included on Schedule K, line 1 through line 11c. Itemize:

a Tax-exempt interest	$ ______________
b Other	$ ______________	•
. . . . . . . . . .c Total. Add line 6a and line 6b	. . . . . . . . . . . . . . . .	•

7Deductions included on Schedule K, line 1 through line 13e

	not charged against book income this year. Itemize:
	a Depreciation	$ ______________
	b Other	$ ______________	•
8	. . . . . . . . . .c Total. Add line 7a and line 7b	. . . . . . . . . . . . . . . .	•
8	. . . . . . . . . .Total. Add line 6c and line 7c . .	. . . . . . . . . . . . . . . .	.
9	Income (loss) (Schedule K, line 21a.) Subtract line 8 from line 5.

Schedule M-2 Analysis of Members’ Capital Accounts. Use California amounts.

1	Balance at beginning of year			5	Total of line 1 through line 4	•
2	Capital contributed during year		6		Distributions: a Cash	•
	a Cash	•			b Property	•
	. . . . . . . . . . . . . . . . .b Property	•		. . . . . . . . . . . . . . . . . . . . . .7 Other decreases. Itemize		•
3	. . . . . . . . . . . . . . . . .Net income (loss) per books . .	•		8	. . .Total of line 6 and line 7
4	. . . . . . . . . . . . . . . . .Other increases. Itemize	•		. . .9 Balance at end of year. Subtract line 8 from line 5

Schedule O Amounts from Liquidation used to Capitalize a Limited Liability Company. (Complete only if initial return box is checked on Side 1, Question H.)

Name of entity liquidated (if more than one, attach a schedule) _____________________________________________________________________________


Type of entity: • (1) C Corporation • (2) S Corporation	• (3) Partnership • (4) Limited Partnership • (5) Sole Proprietor	• (6) Farmer

Entity identification number(s): FEIN __________________ SSN or ITIN __________________ CA Corp. No. _________________ CA SOS File No.
Amount of liquidation gains recognized to capitalize the LLC . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . •	___________________

Side 6 Form 568 2021

3676213

Schedule IW Limited Liability Company (LLC) Income Worksheet

Enter your California income amounts on the worksheet. All amounts entered must be assigned for California law differences. Use only amounts that are from sources derived from or attributable to California when completing lines 1-17 of this worksheet. If your business is both within and outside of California, see Schedule IW instructions to assign the correct amounts to California. If the LLC is wholly within California, the total income amount is assigned to California and is entered beginning with line 1a. If the single member LLC (SMLLC) does not meet the 3 million criteria for filing Schedule B (568) and Schedule K (568), the SMLLC is still required to complete Schedule IW. Disregarded entities that do not meet the filing requirements to complete Schedule B or Schedule K should prepare Schedule IW by entering the California amounts attributable to the disregarded entity from the member’s federal Schedule B, C, D, E, F (Form 1040), or additional schedules associated with other activities. Do not enter amounts on this worksheet that have already been reported by another LLC to determine its fee.

See instructions on page 14 of the Form 568 Booklet for more information on how to complete Schedule IW.

1	a Total California income from Form 568, Schedule B, line 3. See instructions	•	1a
	b Enter the California cost of goods sold from Form 568, Schedule B, line 2 and from federal
	Schedule F (Form 1040) (plus California adjustments) associated with the receipts	•
	assigned to California on lines 1a and 4	•	1b
2	a If the answer to Question U(1) on Form 568 Side 2, is “Yes”, include the gross income of this	•
	disregarded entity that is not included in lines 1 and 8 through 16	•	2a
	b Enter the cost of goods sold of disregarded entities associated with the receipts assigned to	•
	California on line 2a	•	2b
3	a LLC’s distributive share of ordinary income from pass-through entities	•	3a

bEnter the LLC’s distributive share of cost of goods sold from other pass-through entities

		associated with the receipt assigned to California on line 3a (see Schedule K-1s (565),	•
		Table 3, line 1a)	•	3b
	c	Enter the LLC’s distributive share of deductions from other pass-through entities associated with	•
		the receipt assigned to California on line 3a (see Schedule K-1s (565), Table 3, line 1b)	•	3c
4	. . . . . . . . . . . . . . .Add gross farm income from federal Schedule F (Form 1040). Use California amounts		•	4
5	. . . . . . . . . . . . . . . . . . . . . .Enter the total of other income (not loss) from Form 568, Schedule B, line 10		•	5
6	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Enter the total gains (not losses) from Form 568, Schedule B, line 8		•	6
7	Add line 1a through line 6		. . .	. . .	. . . . . . . . . . . .	• 7
8	California rental real estate		•
	a	Enter the total gross rents from federal Form 8825, line 18a	•	8a
	b	Enter the total gross rents from all Schedule K-1s (565), Table 3, line 2	•	8b
	c	Add line 8a and line 8b	. . .	. . .	. . . . . . . . . . . .	• 8c
9	Other California rentals.
	a	Enter the amount from Schedule K (568), line 3a	•	9a
	b	Enter the amount from all Schedule K-1s (565), Table 3, line 3	•	9b
	c	Add lines 9a and 9b	. . .	. . .	. . . . . . . . . . . .	• 9c
10	California interest. Enter the amount from Form 568, Schedule K, line 5		. . .	. . .	. . . . . . . . . . . .	• 10
11	California dividends. Enter the amount from Form 568, Schedule K, line 6		. . .	. . .	. . . . . . . . . . . .	• 11
12	California royalties. Enter the amount from Form 568, Schedule K, line 7		. . .	. . .	. . . . . . . . . . . .	• 12
13	California capital gains. Enter the capital gains (not losses) included in the amounts from Form 568,					• 13
	Schedule K, lines 8 and 9		. . .	. . .	. . . . . . . . . . . .	• 13
14	California 1231 gains. Enter the amount of total gains (not losses) from Form 568, Schedule K, line 10a .		. . .	. . .	. . . . . . . . . . . .	• 14
15	Other California portfolio income (not loss). Enter the amount from Form 568, Schedule K, line 11a		. . .	. . .	. . . . . . . . . . . .	• 15
16	Other California income (not loss) not included in line 5. Enter the amount from Form 568, Schedule K, line 11b					• 16
17	Total California income. Add lines 7, 8c, 9c, 10, 11, 12, 13, 14, 15, and 16. Line 17 may not be a negative number.					• 17
	Enter here and on Form 568, Side 1, line 1. If less than zero enter -0-		. . .	. . .	. . . . . . . . . . . .	• 17

3677213

Form 568 2021 Side 7

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stage 1 to writing form 568 california franchise tax board

You need to submit the agency for any term, entity that owned California real, During this taxable year did this, During this taxable year has more, transactions after an interest in, previous years tax return, Yes requires filing of statement, Complete Schedule IW LLC Income, Whole dollars only, e p a t s, t o n o d t u b, e s o c n E, t n e m y a p y n a, and Total income from Schedule IW box with the necessary information.

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stage 3 to finishing form 568 california franchise tax board

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step 4 to completing form 568 california franchise tax board

Fill out the file by looking at all of these areas: If Yes complete Schedule EO Part I, California Schedule K for each of, If Yes to U does the disregarded, If Yes see instructions and, V Has the LLC included a, If Yes attach schedule of trusts, and If Yes complete Schedule EO Part II.

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	1	. . . . .a Gross receipts or sales $ ____________ b Less returns and allowances $ ____________ .	c Balance
	2	Cost of goods sold (Schedule A, line 8)	. . . . . . . .
	3	GROSS PROFIT. Subtract line 2 from line 1c	. . . . . . . .
	4	Total ordinary income from other LLCs, partnerships, and fiduciaries. Attach schedule	. . . . . . . .
Income	5	Total ordinary loss from other LLCs, partnerships, and fiduciaries. Attach schedule	. . . . . . . .
Income	7	Total farm loss. Attach federal Schedule F (Form 1040)	. . . . . . . .
	6	Total farm profit. Attach federal Schedule F (Form 1040)	. . . . . . . .
	8	Total gains included on Schedule D-1, Part II, line 17 (gain only)	. . . . . . . .
	9	Total losses included on Schedule D-1, Part II, line 17 (loss only)	. . . . . . . .
	10	Other income. Attach schedule	. . . . . . . .
	11	Other loss. Attach schedule	. . . . . . . .
	12	Total income (loss). Combine line 3 through line 11	. . . . . . . .
	13	Salaries and wages (other than to members)	. . . . . . . .
	14	Guaranteed payments to members	. . . . . . . .
	15	Bad debts	. . . . . . . .
Deductions	16	Deductible interest expense not claimed elsewhere on return	. . . . . . . .
Deductions	19	Retirement plans, etc	. . . . . . . .
	17	a Depreciation and amortization. Attach form FTB 3885L $ _________________
		b Less depreciation reported on Schedule A and elsewhere on return $ _________________	c Balance
	18	Depletion. Do not deduct oil and gas depletion	. . . . . . . .
	20	Employee benefit programs	. . . . . . . .
	21	Other deductions. Attach schedule	. . . . . . . .
	22	Total deductions. Add line 13 through line 21	. . . . . . . .
	23	Ordinary income (loss) from trade or business activities. Subtract line 22 from line 12	. . . . . . . .

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