California LLC Form 568
(LLC Return of Income)

Form 568 is a state-level tax return for your LLC. And it gets filed with the California Franchise Tax Board (FTB).

Note: Form 568 gets filed in addition to paying the $800 Annual LLC Tax – and the LLC Estimated Fee.

(The LLC Estimated fee is only due if your LLC makes more than $250,000 per year.)

Who has to file Form 568?

Most California LLCs must file Form 568 (LLC Return of Income) every year. This includes:

• LLC taxed as Sole Proprietorship
  • (This is the default for Single-Member LLCs)
• LLC taxed as Partnership
  • (This is the default for Multi-Member LLCs)
• LLC taxed as Qualified Joint Venture
  • (A special tax election available to “husband and wife” LLCs)

If your LLC has elected to be taxed as a Corporation, you won’t file Form 568. Instead, you’ll file Form 100 or Form 100S:

• If your LLC is taxed as a C-Corporation, you’ll file Form 100.
• If your LLC is taxed as an S-Corporation, you’ll file Form 100S.

Pro Tip: Even if your LLC does nothing and/or makes no money, you still need to file Form 568, Form 100, or Form 100S every year. Additionally, we recommend working with an accountant to make sure you file your federal and state tax returns correctly.

What’s the purpose of Form 568?

Note: Just like how federal taxes work, Form 568 shows your LLC’s financial activity from the previous tax year. And then you’ll pay taxes on that financial activity.

The purpose of filing Form 568 is to report the following financial information to the California FTB:

• $800 Annual Franchise Tax
• Estimated Fee for your LLC
• income
• deductions
• gains
• losses
• cost of goods sold
• salaries
• and more

Non-resident LLC Members:
If applicable, Form 568 will be used (along with Form 3832) to report and pay taxes for any LLC Members who aren’t California residents.

Additional Forms:
Besides what we already mentioned, you most likely need to file additional forms depending on:

• your LLC’s income,
• how many Members your LLC has,
• whether or not you have employees,
• what state the Members are a resident of, and
• what type of business you have.

How to download Form 568, Form 100, or Form 100S

All of these forms can be downloaded from the California FTB website.

(Alternatively, all of these forms can be filed online via California’s Business E-File system.)

To download Form 568:

• Visit California Franchise Tax Board: Forms and Publications
• Click “Search Online“
• Tax Year: Select the appropriate tax year
• Taxpayer Type: Select “Limited Liability Companies“
• Click “Get forms“
• Look for Form 568 and click the download link(s)
• You can also download the “568 Booklet” for instructions

To download Form 100 or Form 100S:

• Visit California Franchise Tax Board: Forms and Publications
• Click “Search Online“
• Tax Year: Select the appropriate tax year
• Taxpayer Type: Select “Corporations“
• Click “Get forms“
• Look for Form 100 or Form 100S and click the download link(s)
• You can also download instructions as well

Penalties and Interest

The FTB is very strict when it comes to making sure your LLC complies with its reporting and payment requirements.

The following actions will subject your LLC to penalties:

• Non-filing of a return
• Late filing of a return
• Filing a return with incomplete information
• Non-payment, underpayment, or late payment of a tax

The penalty can be as low as $18 per month (per Member), and as high as 25% of an unpaid tax.

Furthermore, on top of these penalties, the FTB also charges interest which is compounded daily.

As if that wasn’t bad enough, in some cases (like non-payment or underpayment of taxes), the FTB charges interest on both the unpaid tax and penalty separately. This means you have to pay the tax due with interest, and also the penalty with interest.

When is Form 568 due?

The due date of Form 568 depends on how your LLC is taxed and your accounting period (calendar year or fiscal year).

What is the difference between the calendar year and a fiscal year?

• The calendar year is when your tax year runs from January 1 to December 31 (like with your individual tax return Form 1040).
  • This is what most people do.
• A fiscal year is a non-traditional, 12-month tax year. For example, June 1 to May 31.
  • This isn’t commonly used.

Pro Tip: Over 99% of our readers are calendar year filers. And if you’re not sure what type of filer you are, it’s safe to assume you also follow the calendar year system.

Most LLCs must file Form 568 by March 15th or April 15th every year.

However, the California FTB automatically grants a 6 or 7-month extension to file (not an extension to pay).

Note: Your LLC’s first Form 568 is due the year after your LLC is approved. For example, if your LLC is approved anytime in 2025, your LLC’s first Form 568 is due in 2026.

What is the automatic extension to file?

California automatically grants a 6-month or 7-month extension for LLCs filing a Form 568, Form 100S, and Form 100 (as long as the LLC is in “good standing”).

Important: The extension is an extension to file paperwork, not an extension to pay. Meaning, the state still wants your money by the due date (to avoid penalties and interest). However, they automatically give you 6 to 7 months to file Form 568, Form 100S, or Form 100.

A 6-month filing extension is given to:

• LLCs taxed as Sole Proprietorships
• LLCs taxed as Qualified Joint Ventures
• LLCs taxed as S-Corporations
• LLCs taxed as C-Corporations
• taxed as a Sole Proprietorship
• taxed as a Qualified Joint Venture
• taxed as an S-Corporation
• taxed as a C-Corporation

A 7-month filing extension is given to:

• LLCs taxed as Partnerships
• taxed as a Partnership

Note: For LLCs owned by another LLC, both LLCs need to file Form 568. And the 6 or 7-month filing extension for each LLC depends on how the parent LLC is taxed.

Payment for Automatic Extension for LLCs (Form 3537 or 3539)

Again, the California FTB automatically grants an extension to file Form 568.

But you still have to pay any taxes owed by the original due date.

And along with your payment, you need to submit a payment voucher (Form 3537 or Form 3539).

Form 3537 will be used by:

• LLCs taxed as Sole Proprietorships
• LLCs taxed as Partnerships
• LLCs taxed as Qualified Joint Ventures

Form 3539 will be used by:

• LLCs taxed as C-Corporations
• LLCs taxed as S-Corporations

If your LLC owes a payment, the payment and Form 3537 or 3539 must be filed by the original due date (not the extension due date). Again, the extension due date is for filing the paperwork, not the payment of taxes.

If your LLC doesn’t owe a payment, and will be using the filing extension (for paperwork), then you don’t need to to file Form 3537 or 3539. You’ll simply file your LLC’s paperwork by the extension due date.

Note: For LLCs owned by another LLC, the payment voucher you need to use (for both the Child LLC and the Parent LLC) will depend on how the parent company is taxed.

How to download Form 3537 or Form 3539

Form 3537 and 3539 can be downloaded from the FTB website:

• Visit California Franchise Tax Board: Forms and Publications
• Select the appropriate tax year
• Select the appropriate tax entity
• Click “Get forms“
• Look for Form 3537 or Form 3539

Due dates for filing Form 568 (or Form 100 or 100S):

Disclaimer: We can’t walk you through completing Form 568, Form 100, or Form 100S

Unfortunately, we can’t walk you through these forms as they are complex tax returns that will vary based on:

• how your LLC is taxed,
• how many LLC Members there are,
• whether or not you have employees,
• in which state the LLC Members reside,
• what type of business you have,
• and much more.

We recommend working with an accountant in California.

Do LLCs taxed as Partnerships file Form 565 or Form 568?

There is often confusion for LLCs taxed as Partnerships. Many people think they need to file Form 565 (CA Partnership Return).

But this isn’t true. LLCs taxed as Partnerships don’t file Form 565.

Instead, they file Form 568.

Important notes if your LLC is owned by another LLC

Estimated Tax Payments (Quarterly)

Individuals

If an LLC owner will owe $500 or more in CA taxes, then they must file estimated tax payments using Form 540-ES.

(This is required regardless of how your LLC is taxed.)

LLCs taxed as Corporations

Note: The following applies in addition to LLC owners needing to file estimated tax payments.

If your LLC is taxed as a C-Corporation or S-Corporation, then your LLC also needs to file estimated tax payments using Form 100-ES.

California Franchise Tax Board Contact Info

If you have any questions, you can contact the California Franchise Tax Board (FTB) at 800-852-5711.

Their hours are Monday through Friday from 7am to 5pm, Pacific Time.

• While hold times can sometimes be long, the FTB does have an option to hold your place in line and call you back.
• You can check how long the hold times are here: CA FTB: Time Frames.
• There is also a live chat option: CA FTB: Live Chat.

Matt Horwitz

Founder & Educator, LLC University®

Matt Horwitz is the leading expert on LLC education, and has been teaching for 15 years. He founded LLC University in 2010 after realizing people needed simple and actionable instructions to start an LLC. He's cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight.
 
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.