California Limited Liability Company Return of Income

Limited Liability Company Return of Income
2023 FORM 568 Limited Liability Company Return of Income
TAXABLE  YEAR

2023

Limited Liability Company
Return of Income

CALIFORNIA  FORM

568

For calendar year 2023 or fiscal year beginning	
and ending	
.
	
(m m / d  d / y  y  y  y)	
(m m / d  d / y  y  y  y)

RP

A  California Secretary of State (SOS) file number

Limited liability company name (type or print)

•
Additional information

B FEIN

•
Street address (suite, room, PO box)

PMB no.

City (If the LLC has a foreign address, see instructions.)

State

Foreign country name

Foreign province/state/county

(1) 

□
□

  Cash 

(2) 

□

 

H	 Check the applicable box

Accrual  (3) 

□

Foreign postal code

F	 Date business started in CA
	 (m m / d  d / y  y  y  y)

E	 Check accounting method

• 

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  Other

(attach explanation)	

□

G	 Enter total assets at end of year.
	 See instructions.

•	•	 $

□

• 

(1) 

I	

(1)	 During this taxable year, did this LLC acquire control or majority ownership (more than a 50% interest) in another legal entity?

	
	

return  (2) 

  FINAL

RETURN  (3) 

 

Amended return	   (4) 

  Protective

claim	

If yes, did the acquired entity(ies) own California real property (i.e., land, buildings), lease such property for a term of 35 years
or more, or lease such property from a government agency for any term? If yes to both questions, answer yes..  . . . . . . . . . . . . . .

□ □

• 

 Yes 

(2)	 During this taxable year, did another person or legal entity acquire control or majority ownership (more than a 50%
interest) of this LLC or any legal entity in which the partnership holds a controlling or majority interest?

	
	

  Initial

ZIP code

If yes, did the acquired entity(ies) own California real property (i.e., land, buildings), lease such property for a term of
35 years or more, or lease such property from a government agency for any term? If yes to both questions, answer yes.  .

□ □

• 

 Yes 

(3)	 Has California real property (i.e., land, buildings) transferred to the LLC that was excluded from property tax
reassessment under Revenue and Taxation Code Section 62(a)(2)?

	
	

If yes, during this taxable year, has more than 50% of the LLC's ownership interests cumulatively transferred in one
or more transactions and it was not reported on a previous year's tax return? If yes to both questions, answer yes. . . . . . .
(Yes requires filing of BOE-100-B statement, penalties may apply– see instructions.)
Complete Schedule IW, LLC Income Worksheet (on Side 7) first to determine line 1.

 No

□ □

• 

 Yes 

 No

Whole dollars only

•
Limited Liability Company fee. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  •
2023 annual Limited Liability Company tax. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  •
Pass-through entity elective tax. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  •
Nonconsenting nonresident members’ tax liability from Schedule T (Side 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . .  •
Partnership level tax. If IRS concluded a centralized audit for this year, see instructions. If not, leave blank.. . . .  •
Total tax and fee. Add line 2, line 3, line 4, line 5, and line 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . •
Amount paid with form FTB 3537 and 2023 form FTB 3522 and form FTB 3536. . . . . . . . . . . . . . . . . . . . . . . . . .  •
Amounts paid for pass-through entity elective tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  •
Overpayment from prior year allowed as a credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  •
Withholding (Form 592-B and/or 593). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  •
Total payments. Add line 8, line 9, line 10 and line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  •
Use tax. This is not a total line. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  •
Payments balance. If line 12 is more than line 13, subtract line 13 from line 12. . . . . . . . . . . . . . . . . . . . . . . . . .  •
Use tax balance. If line 13 is more than line 12, subtract line 12 from line 13. . . . . . . . . . . . . . . . . . . . . . . . . . .  •
Tax and fee due. If line 7 is more than line 14, subtract line 14 from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  •
Overpayment. If line 14 is more than line 7, subtract line 7 from line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  •

1 Total income from Schedule IW, Limited Liability Company Income Worksheet. See instructions . . . . . . . . . . . . 

1

00

2

2

00

3

00

4

00

5

00

6

00

7

00

8

00

9

00

10

00

11

00

12

00

13

00

14

00

15

00

16

00

17

00

3
4
Enclose, but do not staple,
any payment.

 No

5
6
7
8
9
10
11
12
13
14
15
16
17

3671233

Form 568  2023  Side 1

Whole dollars only
18 Amount of line 17 to be credited to 2024 tax or fee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
19 Refund. If the total of line 18 is less than line 17, subtract the total from line 17 . . . . . . . . . . . . . . . .

• 19

20 Penalties and interest. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
21 Total amount due. Add line 15, line 16, line 18, and line 20, then subtract line 17 from the result. . 

• 21

•

18

•

20

00

. 00

 J	 Principal business activity code (Do not leave blank)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	 Business activity ________________________ Product or service _____________________________ 
 K	 Enter the maximum number of members in the LLC at any time during the year. For multiple member LLCs, attach a
	
California Schedule K-1 (568) for each of these members  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

00

.

•

•
 L	 Is this LLC an investment partnership? See General Information O  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 
 M	 (1)	 Is this LLC apportioning or allocating income to California using Schedule R? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 

 Yes 

	

 Yes 

(2)	 If “No,” was this LLC registered in California without earning any income sourced in this state during the taxable year? . . . .

 N	 Was there a distribution of property or a transfer (for example, by sale or death) of an LLC interest during the taxable year? . . . .
 P	 (1)	 Does the LLC have any foreign (non-U.S.) nonresident members? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	(2)	 Does the LLC have any domestic (non-foreign) nonresident members? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	(3)	 Were Form 592, Form 592-A, Form 592-B, Form 592-F, and Form 592-PTE filed for these members? . . . . . . . . . . . . . . . . . .
 Q	 Are any members in this LLC also LLCs or partnerships? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 R	 Is this LLC under audit by the IRS or has it been audited in a prior year? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 S	 Is this LLC a member or partner in another multiple member LLC or partnership?  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If “Yes,” complete Schedule EO, Part I.

	

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 Yes 

 Yes 
 Yes 

 Yes 
 Yes 
 Yes 

 Yes 
 Yes 

 T	 Is this LLC a publicly traded partnership as defined in IRC Section 469(k)(2)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  	

 Yes 

 U	 (1)	 Is this LLC a business entity disregarded for tax purposes?  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

 Yes 

	
(2)	 If “Yes,” see instructions and complete Side 1, Side 2, Side 3, Schedule B, Side 5, and Side 7, if applicable. Are there
		
credits or credit carryovers attributable to the disregarded entity?  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 Yes 

	
(3)	 If “Yes” to U(1), does the disregarded entity have total income derived from or attributable to California that is less than
		
the LLC’s total income from all sources? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  	
 V	 Has the LLC included a Reportable Transaction, or Listed Transaction within this return?
	

(See instructions for definitions). If “Yes,” complete and attach federal Form 8886 for each transaction.  . . . . . . . . . . . . . . . . . . .

 W	 Did this LLC file the Federal Schedule M-3 (federal Form 1065)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 X	 Is this LLC a direct owner of an entity that filed a federal Schedule M-3? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 Y	 Does the LLC have a beneficial interest in a trust or is it a grantor of a Trust?  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	
If “Yes,” attach schedule of trusts and federal identification numbers.
 Z	 Does this LLC own an interest in a business entity disregarded for tax purposes?.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
	
If “Yes,” complete Schedule EO, Part II.
AA	 Is any member of the LLC related (as defined in IRC Section 267(c)(4)) to any other member of the LLC? . . . . . . . . . . . . . . . . . .
BB	 Is any member of the LLC a trust for the benefit of any person related (as defined in IRC Section 267(c)(4))
	
to any other member? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

00

  Yes 

 Yes 
 Yes 
 Yes 
 Yes 

 

 Yes 

 Yes 

 Yes 

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 No
 No

 No
 No
 No
 No
 No
 No
 No

		

 No
 No

 No

 No

 No

 No
 No
 No
 No
 No

 No

 No

(continued on Side 3)

Side 2  Form 568  2023

3672233

(continued from Side 2)
CC	 (1)	 Is the LLC deferring any income from the disposition of assets? (see instructions)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)	 If “Yes,” enter the year of asset disposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

	

DD	 Is the LLC reporting previously deferred Income from:
	
(see instructions)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

□ 

• 

EE “Doing business as” name. See instructions: . . . . . . . . . . . . . . . 

Installment Sale 

□ 

• 

IRC §1031 

□  □ 

• 

Yes 

•

□ 

• 

No

IRC §1033 

□

• 

 Other

• _____________________________________________________________________

FF	 (1)	 Has this LLC operated as another entity type such as a Corporation, S Corporation, General Partnership,
		
Limited Partnership, or Sole Proprietorship in the previous five (5) years? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

□  □ 

• 

Yes 

No

(2)	 If “Yes”, provide prior FEIN(s) if different, business name(s), and entity type(s) for prior returns
		
filed with the FTB and/or IRS (see instructions): _________________________________________________________________________________

	

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• 
	
(2)	 Is this the first year of doing business in California? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 
HH	 Is the LLC a section 721(c) partnership, as defined in Treasury Regulations Section 1.721(c)-1T(b)(14)?  . . . . . . . . . . . . . . . . . . .  
GG	 (1)	 Has this LLC previously operated outside California? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

II	
	

At any time during the tax year, were there any transfers between the LLC and its members subject to the
disclosure requirements of Regulations section 1.707-8?  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• Aggregated activities for IRC Section 465 at-risk purposes
(2)  • Grouped activities for IRC Section 469 passive activity purposes

Yes 
Yes 
Yes 
Yes 

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No

No
No
No

JJ	 Check if the LLC: (1) 
			

KK	(1) Has this business entity previously filed an unclaimed property Holder Remit Report with the State Controller’s Office?.  . . . . 
	

(2) If “Yes,” when was the last report filed? (mm/dd/yyyy)

• ________________

□  □ 

• 

Yes 

No

(3) Amount last remitted ◾ $____________________ . _______

Single Member LLC Information and Consent — Complete only if the LLC is disregarded.

• Federal TIN/SSN

Sole Owner’s name (as shown on owner’s return)

FEIN/CA Corp no./CA SOS File no.

•
Street Address, City, State, and ZIP Code

 • What type of entity is the ultimate owner of this SMLLC? See instructions. Check only one box:

•

(1) Individual	

•

(2) C Corporation	

•

(4) Estate/Trust	

•

(5) Exempt Organization

•

(3) Pass-Through (S corporation, partnership, LLC classified as a partnership) 

Member’s Consent Statement: I consent to the jurisdiction of the State of California to tax my LLC income and agree to file returns and pay tax as may be
required by the Franchise Tax Board.
Signature
	
▶

Sign
Here

Date
Our privacy notice can be found in annual tax booklets or online. Go to ftb.ca.gov/privacy to learn about our privacy policy statement, or go to ftb.ca.gov/forms and search for
1131 to locate FTB 1131 EN-SP, Franchise Tax Board Privacy Notice on Collection. To request this notice by mail, call 800.338.0505 and enter form code 948 when instructed.
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true,
correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Signature
of authorized
member or
manager ▶

Date
Telephone

• 

Authorized member or manager’s email address (optional)
Paid
preparer’s
signature ▶

Date

Paid
Preparer’s
Firm’s name (or yours,
Use Only

Check if
self-employed •	

PTIN

•

Firm’s FEIN

•

if self-employed)   ▶
and address 

Telephone

May the FTB discuss this return with the preparer shown above (see instructions)? . . . . . . . . . . .

3673233

• 
• • Yes  • No
Form 568  2023  Side 3

Schedule A  Cost of Goods Sold
1
2
3
4
5
6
7
8
9

00
Inventory at beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
00
Purchases less cost of items withdrawn for personal use. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
00
Cost of labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
00
Additional IRC Section 263A costs. Attach schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
00
Other costs. Attach schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
00
Total. Add line 1 through line 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
00
Inventory at end of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
00
Cost of goods sold. Subtract line 7 from line 6. Enter here and on Schedule B, line 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
a		Check all methods used for valuing closing inventory:
(1)  • Cost  (2)  • Lower of cost or market as described in Treas. Reg. Section 1.471-4   (3)  • Write down of “subnormal” goods as
described in Treas. Reg. Section 1.471-2(c)   (4)  • Other. Specify method used and attach explanation ___________________________
b	 Check this box if the LIFO inventory method was adopted this taxable year for any goods. If checked, attach federal Form 970 . . . . . . . . . . . • 
c	 Do the rules of IRC Section 263A (with respect to property produced or acquired for resale) apply to the LLC? . . . . . . . . . . . . . . . . . . . . . . . • Yes  • No
d	 Was there any change (other than for IRC Section 263A purposes) in determining quantities, cost, or valuations between opening
and closing inventory? If “Yes,” attach explanation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • Yes  • No

Schedule B  Income and Deductions
Caution: Include only trade or business income and expenses on line 1a through line 22 below. See the instructions for more information.

•

Deductions

Income

1c
a Gross receipts or sales $ _____________ b Less returns and allowances $ _____________ . . . . . c Balance
Cost of goods sold (Schedule A, line 8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 2
3
GROSS PROFIT. Subtract line 2 from line 1c. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Total ordinary income from other LLCs, partnerships, and fiduciaries. Attach schedule. . . . . . . . . . . . . . . . . . . .
5
Total ordinary loss from other LLCs, partnerships, and fiduciaries. Attach schedule. . . . . . . . . . . . . . . . . . . . . . .
6
Total farm profit. Attach federal Schedule F (Form 1040). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Total farm loss. Attach federal Schedule F (Form 1040). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Total gains included on Schedule D-1, Part II, line 17 (gain only). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Total losses included on Schedule D-1, Part II, line 17 (loss only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Other income. Attach schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Other loss. Attach schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total income (loss). Combine line 3 through line 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Salaries and wages (other than to members). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
Guaranteed payments to members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
Bad debts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
Deductible interest expense not claimed elsewhere on return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
a  Depreciation and amortization. Attach form FTB 3885L $ __________________
b  Less depreciation reported on Schedule A and elsewhere on return $ __________________. . . . . c Balance
17c
18 Depletion. Do not deduct oil and gas depletion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
19 Retirement plans, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
20 Employee benefit programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20
21 Other deductions. Attach schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
22 Total deductions. Add line 13 through line 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
23 Ordinary income (loss) from trade or business activities. Subtract line 22 from line 12. . . . . . . . . . . . . . . . . . . .
23
Schedule T  Nonconsenting Nonresident Members’ Tax Liability. Attach additional sheets if necessary.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17

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(a)
Member’s name

(b)
SSN, ITIN,
or FEIN

(c)
Distributive
share of income

(d)
Tax
rate

(e)
Member’s
total tax due
(see instructions)

(f)
Amount withheld by this
LLC on this member –
reported on Form 592-B

(g)
Member’s
net tax due

Total the amount of tax due. Enter the total here and on Side 1, line 4. If less than zero enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ________________

Side 4  Form 568  2023

3674233

Schedule K  Members’ Shares of Income, Deductions, Credits, etc.
(a)
Distributive share items

Analysis

Other Information

Alternative Minimum
Tax (AMT) Items

Credits

Deductions

Income (Loss)

•

(b)
Amounts from
federal K (1065)

1 Ordinary income (loss) from trade or business activities. . . . . . . . . . . . . . . . . 1
2 Net income (loss) from rental real estate activities. Attach federal Form 8825. 2
3 a  Gross income (loss) from other rental activities . . . . . . . . . . . . . . . . . . . . 3a
b  Less expenses. Attach schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3b
c  Net income (loss) from other rental activities. Subtract line 3b
  from line 3a. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3c
4 Guaranteed payments  a Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4a
b Capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4b
c Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4c
5 Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6 Dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7 Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
8 Net short-term capital gain (loss). Attach Schedule D (568). . . . . . . . . . . . . . 8
9 Net long-term capital gain (loss). Attach Schedule D (568). . . . . . . . . . . . . . . 9
10 a  Total gain under IRC Section 1231 (other than due to casualty or theft). . 10a
b  Total loss under IRC Section 1231 (other than due to casualty or theft) . . 10b
11 a  Other portfolio income (loss). Attach schedule. . . . . . . . . . . . . . . . . . . . . 11a
b  Total other income. Attach schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11b
c  Total other loss. Attach schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11c
12 Expense deduction for recovery property (IRC Section 179). Attach schedule 12
13 a  Cash contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13a
b  Noncash contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13b
c  Investment interest expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13c
d  1  Total expenditures to which IRC Section 59(e) election may apply . . . 13d1 •
  2  Type of expenditures _____________________________________ 13d2
e  Deductions related to portfolio income . . . . . . . . . . . . . . . . . . . . . . . . . . . 13e
f  Other deductions. Attach schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13f
15 a  Withholding on LLC allocated to all members. . . . . . . . . . . . . . . . . . . . . . . . .  15a
b  Low-income housing credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15b
c  Credits other than the credit shown on line 15b related to rental real
  estate activities. Attach schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15c
d  Credits related to other rental activities. Attach schedule. . . . . . . . . . . . . . 15d
e  Nonconsenting nonresident members’ tax paid by LLC. . . . . . . . . . . . . . . 15e
f  Other credits. Attach schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15f
17 a  Depreciation adjustment on property placed in service after 1986. . . . . . 17a
b  Adjusted gain or loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17b
c  Depletion (other than oil and gas) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17c
d  Gross income from oil, gas, and geothermal properties . . . . . . . . . . . . . . 17d
e  Deductions allocable to oil, gas, and geothermal properties . . . . . . . . . . . 17e
f  Other alternative minimum tax items. Attach schedule . . . . . . . . . . . . . . . 17f
18 a  Tax-exempt interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18a
b  Other tax-exempt income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18b
c  Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18c
19 a  Distributions of money (cash and marketable securities) . . . . . . . . . . . . . 19a
b  Distribution of property other than money. . . . . . . . . . . . . . . . . . . . . . . . . 19b
20 a  Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20a
b  Investment expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20b
c  Other information. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20c
21 a  Total distributive income/payment items. Combine lines 1, 2, 3c
	 and 4c through 11c. From the result, subtract the sum of lines 12
	 through 13f. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21a
b  Analysis of
(a)
(c)
(b) Individual
members:
Members

•

Corporate

•

i. Active

•

ii. Passive

•

Partnership

3675233

(c)
California
adjustments

(d)
Total amounts using
California law

•
•
•

•
•
•
•
•
•
•
•
•
•
•

•
•

•

•

•

(d)

(e)

Exempt Organization

Nominee/Other

•

•

(f)
LLC

Form 568  2023  Side 5

Schedule L  Balance Sheets. See instructions before completing Schedules L, M-1, and M-2.
Beginning of taxable year
(a)
(b)

Assets
1 Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 a  Trade notes and accounts receivable. . . . . . . . . . . .
b  Less allowance for bad debts. . . . . . . . . . . . . . . . . .
3 Inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 U.S. government obligations. . . . . . . . . . . . . . . . . . . . .
5 Tax-exempt securities . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Other current assets. Attach schedule. . . . . . . . . . . . . .
7 a  Loans to members. . . . . . . . . . . . . . . . . . . . . . . . . .
b  Mortgage and real estate loans . . . . . . . . . . . . . . . .
8 Other investments. Attach schedule. . . . . . . . . . . . . . . .
9 a  Buildings and other depreciable assets. . . . . . . . . .
b  Less accumulated depreciation. . . . . . . . . . . . . . . .
10 a  Depletable assets. . . . . . . . . . . . . . . . . . . . . . . . . . .
b  Less accumulated depletion. . . . . . . . . . . . . . . . . . .
11 Land (net of any amortization). . . . . . . . . . . . . . . . . . . .
12 a  Intangible assets (amortizable only) . . . . . . . . . . . .
b  Less accumulated amortization. . . . . . . . . . . . . . . .
13 Other assets. Attach schedule. . . . . . . . . . . . . . . . . . . .
14 Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liabilities and Capital

 (         )

End of taxable year
(c)

(d)

 (         )

•
•
•

 (         )

 (         )

 (         )

 (         )

 (         )

 (         )

•
•
•
•
•

15
16
17
18
19

Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mortgages, notes, bonds payable in less than 1 year. . .
Other current liabilities. Attach schedule. . . . . . . . . . . .
All nonrecourse loans . . . . . . . . . . . . . . . . . . . . . . . . . .
a  Loans from members. . . . . . . . . . . . . . . . . . . . . . . .
•
b  Mortgages, notes, bonds payable in 1 year or more.
20 Other liabilities. Attach schedule . . . . . . . . . . . . . . . . . .
21 Members’ capital accounts . . . . . . . . . . . . . . . . . . . . . .
22 Total liabilities and capital. . . . . . . . . . . . . . . . . . . . . . .
Schedule M-1  Reconciliation of Income (Loss) per Books With Income (Loss) per Return. Use total amount under California law. See instructions.

•

•
•
•

1 Net income (loss) per books. . . . . . . . . . . . . . . . . . . . . . .
2 Income included on Schedule K, line 1 through line 11c
not recorded on books this year. Itemize. . . . . . . . . . . . . .
3 Guaranteed payments (other than health insurance). . . . . .
4 Expenses recorded on books this year not included on
Schedule K, line 1 through line 13f. Itemize:
a Depreciation. . . . . . . . . . . . . . . . . $ ______________
b  Travel and entertainment . . . . . . . $ ______________
c  Annual LLC tax . . . . . . . . . . . . . . $ ______________
d Other. . . . . . . . . . . . . . . . . . . . . . $ ______________
e  Total. Add line 4a through line 4d. . . . . . . . . . . . . . . . .
5 Total of line 1 through line 4e. . . . . . . . . . . . . . . . . . . . . . . . .

•

•

6 Income recorded on books this year not included on
Schedule K, line 1 through line 11c. Itemize:
a  Tax-exempt interest. . . . . . . . . . . . . . .  $ ______________
b Other. . . . . . . . . . . . . . . . . . . . . . . . . .  $ ______________
c  Total. Add line 6a and line 6b. . . . . . . . . . . . . . . . . . . . . . . . . . 
7 Deductions included on Schedule K, line 1 through line 13f
not charged against book income this year. Itemize:
a Depreciation. . . . . . . . . . . . . . . . . . . . .  $ ______________
b Other. . . . . . . . . . . . . . . . . . . . . . . . . .  $ ______________
c  Total. Add line 7a and line 7b. . . . . . . . . . . . . . . . . . . . . . . . . . 
8 Total. Add line 6c and line 7c. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
9 Income (loss) (Schedule K, line 21a.) Subtract line 8 from line 5.

•

•

Schedule M-2  Analysis of Members’ Capital Accounts. Use California amounts.
1 Balance at beginning of year . . . . . . . . . . . . . . . . . . . 
5 Total of line 1 through line 4 . . . . . . . . . . . . . . . . . . . .
2 Capital contributed during year
6 Distributions:  a Cash. . . . . . . . . . . . . . . . . . . . . . . .
a Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	
b Property. . . . . . . . . . . . . . . . . . . . .
b Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7 Other decreases. Itemize. . . . . . . . . . . . . . . . . . . . . . .
3 Net income (loss) per books. . . . . . . . . . . . . . . . . . . 
8 Total of line 6 and line 7. . . . . . . . . . . . . . . . . . . . . . . .
4 Other increases. Itemize. . . . . . . . . . . . . . . . . . . . . . . .
9 Balance at end of year. Subtract line 8 from line 5. . . .
Schedule O  Amounts from Liquidation used to Capitalize a Limited Liability Company. (Complete only if initial return box is checked on Side 1, Question H.)
Name of entity liquidated (if more than one, attach a schedule) _____________________________________________________________________________

•
•
•

•
•
•

Type of entity:  • (1) C Corporation  • (2) S Corporation  • (3) Partnership  • (4) Limited Partnership  • (5) Sole Proprietor  • (6) Farmer
Entity identification number(s):  FEIN __________________  SSN or ITIN __________________  CA Corp. No. _________________  CA SOS File No. 	

Amount of liquidation gains recognized to capitalize the LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Side 6  Form 568  2023

3676233

• ___________________

Schedule IW  Limited Liability Company (LLC) Income Worksheet
Enter your California income amounts on the worksheet. All amounts entered must be assigned for California law differences. Use only amounts that are from
sources derived from or attributable to California when completing lines 1-17 of this worksheet. If your business is both within and outside of California, see
Schedule IW instructions to assign the correct amounts to California. If the LLC is wholly within California, the total income amount is assigned to California and
is entered beginning with line 1a. If the single member LLC (SMLLC) does not meet the 3 million criteria for filing Schedule B (568) and Schedule K (568), the
SMLLC is still required to complete Schedule IW. Disregarded entities that do not meet the filing requirements to complete Schedule B or Schedule K should prepare
Schedule IW by entering the California amounts attributable to the disregarded entity from the member’s federal Schedule B, C, D, E, F (Form 1040), or additional
schedules associated with other activities. Do not enter amounts on this worksheet that have already been reported by another LLC to determine its fee.
See instructions on page 14 of the Form 568 Booklet for more information on how to complete Schedule IW.

•
  1	a	 Total California income from Form 568, Schedule B, line 3. See instructions . . . . . . . . . . . . . . . . . . . .    1a
	b	
Enter the California cost of goods sold from Form 568, Schedule B, line 2 and from federal
Schedule F (Form 1040) (plus California adjustments) associated with the receipts
•
assigned to California on lines 1a and 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    1b
 2	 a	 If the answer to Question U(1) on Form 568 Side 2, is “Yes”, include the gross income of this
•
disregarded entity that is not included in lines 1 and 8 through 16  . . . . . . . . . . . . . . . . . . . . . . . . . . .    2a
	b	
Enter the cost of goods sold of disregarded entities associated with the receipts assigned to
•
California on line 2a  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    2b

•
 3	 a	 LLC’s distributive share of ordinary income from pass-through entities . . . . . . . . . . . . . . . . . . . . . . . .    3a
	b	
Enter the LLC’s distributive share of cost of goods sold from other pass-through entities
associated with the receipt assigned to California on line 3a (see Schedule K-1s (565),
•
Table 3, line 1a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    3b
	c	
Enter the LLC’s distributive share of deductions from other pass-through entities associated with
•
the receipt assigned to California on line 3a (see Schedule K-1s (565), Table 3, line 1b) . . . . . . . . . . . .   3c
• 4
 4	 Add gross farm income from federal Schedule F (Form 1040). Use ­California amounts . . . . . . . . . . . . . . .    
• 5
 5	 Enter the total of other income (not loss) from Form 568, Schedule B, line 10  . . . . . . . . . . . . . . . . . . . . .     
• 6
 6	 Enter the total gains (not losses) from Form 568, Schedule B, line 8.  . . . . . . . . . . . . . . . . . . . . . . . . . . . .     
•
  7	 Add line 1a through line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    7
  8	 California rental real estate

•
	a	
Enter the total gross rents from federal Form 8825, line 18a  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    8a
•
	b	
Enter the total gross rents from all Schedule K-1s (565), Table 3, line 2  . . . . . . . . . . . . . . . . . . . . . . .    8b
•
	c	
Add line 8a and line 8b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   8c
  9	 Other California rentals.
	
	
	

•
a	 Enter the amount from Schedule K (568), line 3a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    9a
•
b	 Enter the amount from all Schedule K-1s (565), Table 3, line 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    9b
• 9c
c	 Add lines 9a and 9b  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   

•
10	� California interest. Enter the amount from Form 568, Schedule K, line 5  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   10
•
11	� California dividends. Enter the amount from Form 568, Schedule K, line 6  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   11
•
12	� California royalties. Enter the amount from Form 568, Schedule K, line 7  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   12
13	� California capital gains. Enter the capital gains (not losses) included in the amounts from Form 568,
•
Schedule K, lines 8 and 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   13

•
14	� California 1231 gains. Enter the amount of total gains (not losses) from Form 568, Schedule K, line 10a  . . . . . . . . . . . . . . . . . . .   14
•
15	� Other California portfolio income (not loss). Enter the amount from Form 568, Schedule K, line 11a . . . . . . . . . . . . . . . . . . . . . .   15
•
16	� Other California income (not loss) not included in line 5. Enter the amount from Form 568, Schedule K, line 11b . . . . . . . . . . . .   16
17	� Total California income. Add lines 7, 8c, 9c, 10, 11, 12, 13, 14, 15, and 16. Line 17 may not be a negative number.
•
Enter here and on Form 568, Side 1, line 1. If less than zero enter -0-  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   17

3677233

Form 568  2023  Side 7