California LLC filing 568 if terminated

[parvitstax]

If the LLC was created in September 2022 and terminated (phone call with FTB) in January 2023, is it still necessary to file Form 568 for 2022?

My thinking is that "yes" and you mark the 2022 Form 568 as "final". Is this correct or do LLC's active for less than a year get special treatment?

[MikeB_CPA · Accepted solution]

I have limited experience with the CA LLC filing requirements.  Based on my understanding of the CA filing instructions, I believe that returns are likely necessary for both 2022 and 2023.  I believe in order to avoid the 2023 LLC filing requirement, it has to have been closed on or before 12/31/22.

[parvitstax]

This was my thinking too. I was just dealing with a client that did not want me to file the LLC because they thought terminating it clears them of filing and they believe I am telling them to file so I can charge them more (smh). 

I believe you can only avoid filing if you terminate the LLC within 15 days of creation.

[MikeB_CPA]

Check out Form 568 Booklet.  On page 11 of the 2021 version, cancelling the LLC is addressed.  If the booklet has been updated to a 2022 version, I have not yet referenced it.  I agree that unless the LLC was in existence for less than 15 days, filings are required.  I never cease to be amazed at the number of people who insist on forming an LLC, frequently with no idea why they are forming it or the additional work involved.  Good luck, and have a great tax season.

[parvitstax]

I agree. It appears that very little research is done into the "why" they need an LLC. Have a great tax season as well!