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State of California Franchise Tax Board

Changes to 2005 Forms

2005 Updates to Form 568 Booklet

Revision Date: 02/02/2006

Revision Details: Instructions Revision

  • Under: F Limited Liability Company Tax and Fee, Page 4

It should read:

Each series in Delaware Series LLC is considered a separate LLC and must file its own Form 568 Limited Liability Company Return of Income and pay its own separate LLC annual tax and fee if it is registered or doing business in California.

Delaware Series LLCs

The Delaware Series LLC is a relatively new business classification and there is minimal federal guidance regarding whether each series within a master series LLC is a separate taxpayer. The FTB has taken the position that each series within the Series LLC is a separate business entity and each has a filing requirement if it is registered or doing business in California. Each series in a Delaware Series LLC is considered a separate LLC and must file its own Form 568, Limited Liability Company Return of Income, and pay its own separate LLC annual tax and fee. A statement to this affect was added to the LLC booklet instructions for 2005.

The Treasury Department has not issued direct guidance on the treatment of Series LLCs. The series LLCs are compared to the separate series of a single trust which have been regarded as separate taxpayers as found in National Securities Series - Industrial Stock Series v. Commissioner, 13 TC 884 and Revenue Ruling 55-416. In addition, the IRS issued various private letter rulings based on those early authorities.

California has not adopted a similar statute to the Delaware Series LLC.

This revision is required on all printed products; Form 568 Booklet, page 4, and Package X, Page 402.
The revised internet version is available for download.


2005 Updates to Form 568 Booklet

Revision Date:1/19/06

Revision Details: Form 568 Booklet, Instructions for When and Where to File, page 4 and Schedule B - Income and Deductions, page 12.

  • Form 568 Instructions, page 4, when and Where to File, Annual Limited Liability Company Tax

It should read:

...before the 15th day of the 4th month after the beginning of the taxable year (fiscal year) or April 15, 2005 (calendar year).

  • Form 568 Instructions, page 12,Schedule B - Income and Deductions, Claim of Right

It should read:

.add the credit amount to the total on line 9, Total payments.

These revisions are need only in the printed version of the 2005 Form 568 Booklet and the 2005 Package X pages 404 and 412.

Taxpayermay feel he/she has another year to submit the 2005 annual tax of $800 when in fact it is due 4-15-05, but it will be a year late if they submit the payment in 2006. The "Total payments"line is line 9, nt line 13. Taxpayer may add the credit amount to the Use Tax line instead of the Total payments line, which would overstate their tax liability.

The revised internet version is available for download.

Back to Tax Form Changes for 2005

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