Single member LLC Business type
If your LLC has one owner, you’re a single member limited liability company (SMLLC). If you are married, you and your spouse are considered one owner and can elect to be treated as an SMLLC.
We require an SMLLC to file Form 568, even though they are considered a disregarded entity for tax purposes. They are subject to the annual tax, LLC fee and credit limitations.
Open a SMLLC
To form an SMLLC, file Formation - Articles of Organization (Form LLC-1) with the California Secretary of State.
SMLLCs have the same filing requirements as an LLC.
Owned by a pass-through entity
If your SMLLC is owned by an:
- S corporation
Then your return is due on the 15th day of the 3rd month at the close of your taxable year.
Exceptions to the first year annual tax
An SMLLC is not subject to the annual tax and fee if both of the following are true:
- They did not conduct any business in California during the tax year
- Their tax year was 15 days or fewer
Apportionment and allocation
A trade or business with income within and outside of California may be subject to California apportionment and allocation rules. Visit apportionment and allocation for more information.