Make sure your SMLLC clients file a Form 568 for the LLC May 2021 Tax News

A single member limited liability company (SMLLC) is considered disregarded for federal income tax purposes. However, in California, SMLLCs are considered separate legal entities that are subject to:

  • An LLC tax
  • An LLC fee
  • An LLC return filing requirement (Form 568)

Generally, a disregarded SMLLC must file a Form 568 by the same deadline applicable to the owner's tax return. California grants an automatic extension of time to file a return; however, an extension of time to file is not an extension of time to pay the LLC tax or fee.

Important note: Due to the current COVID-19 pandemic, The Franchise Tax Board, consistent with the Internal Revenue Service, has postponed the state tax filing and payment deadline for individual taxpayers to May 17, 2021. This postponement only applies to individual taxpayers and does not apply to SMLLCs. SMLLCs, owned by an individual, are required to file Form 568 on or before April 15.

You and your clients should be aware that a disregarded SMLLC is required to:

  • File a tax return (Form 568)
  • Pay the LLC annual tax
  • Pay the LLC fee (if applicable)

Visit our Due dates for Businesses webpage for more information.