What is the difference between a Schedule K-1 (565) and a Schedule K (568) for a California Limited Liability Company (LLC) and which one is required to be filed for each member?
A California LLC files Form 568, the California Limited Liability Company Return of Income, to report its income and expenses. Members of the LLC receive a share of this income and are required to report it on their personal tax returns. For each member, the LLC must prepare and provide a Schedule K-1 (Form 565), California Resident or Nonresident Member's Share of Income, Deductions, Credits, etc., or a Schedule K-1 (Form 566), California Nonresident or Foreign Member's Share of Income, Deductions, Credits, etc., depending on the member's residency status. The LLC files Form 568, while each member files their personal income tax return with the Schedule K-1(s).