Form 568 Instructions

Form 568 is the tax return of Limited Liability Companies in California. It’s no different than an individual state income tax return. The same as any other type of tax return, you’ll need to provide the state tax department, Franchise Tax Board, with information about income, expenses, deductions, and credits. Once you’re filing Form 568, you’ll know how much the LLC owes in taxes or if it deserves a refund. 

When filing Form 568, you’ll certainly need the instructions to file as it will help you fill out the form without errors. If you find errors on your Limited Liability Company Return of Income, you amend it with the Franchise Tax Board. To file the form, you have two options as with other types of tax returns. You can either file it electronically through a tax preparation service or submit a paper tax return. While most tax preparers will use tax preparation software, some details on your tax return may require you to file it on paper, thus, the preparer must submit a paper tax return. That’s, of course, assuming that you’re going to file taxes through a tax preparer, not by yourself. Take a look at the instructions to file when completing Form 568, even if you filed Form 568 previously. 

Form 568 Due Date

Form 568 is due on March 31st following the end of the tax year. While you can submit your state income tax return and federal income tax return by April 15, you must prepare and file it with the Franchise Tax Board by the deadline. Otherwise, you’ll pay late-filing penalties that can increase your liability. Make sure to file Form 568 by March 31st, even if you don’t owe taxes for the tax year. 

Schedule K-1 with Form 568

If a Limited Liability Company elected to be treated as a partnership for tax purposes, Schedule K-1 for Form 568 must be attached. This attachment is used for reporting member’s share of income, deductions, credits, etc. to report the distributive share of the LLC for your records. 

If Form 568 isn’t attached, there will be errors on the tax filing software, and the IRS will want the return to be corrected if filed on paper. After Form 568 is filed, the CA state tax department can issue a tax refund as a result of overpaying taxes during the tax year in comparison to how much owed for the tax year. 

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