CA Form 565 - Nonregistered Foreign LLCs that do not do business in CA need to file Form 565 not 568

[KarenA]

I have a Wisconsin LLC that receives California income from a CA Form 565 K-1 from a partnership interest which the LLC owns.  California has an LLC tax return (Form 568) and a partnership tax return (Form 565). Per the CA Form 568 and Form 565 instructions, since my LLC does not do business in CA, I am required to file a CA Form 565 for the LLC and not a CA Form 568.  However, Lacerte assumes that all LLCs that file in California need to file a Form 568.  Please give me the ability to select as entity type, "Limited Liability Company" and yet prepare Form 565 in compliance to the California instructions.

Per the CA Form 568 instructions:  "Exception: Nonregistered foreign (i.e., not organized in California) LLCs and LPs (excluding disregarded entities/single member LLCs) that are not doing business, but are deriving income from California or filing to report an election on behalf of a California resident file Form 565 instead of Form 568."

[corpserv]

This is a compliance issue.

Lacerte needs to be able to file Form 1065 (Partnership/LLC) for Federal and Form 565 (Partnership) for California.  The system defaults to Form 1065 (Partnership/LLC) for Federal and Form 568 (LLC) for California, with no way to select Form 565 under the Exception per the Partnership Tax Booklet.