CA form 568 for SMLLC with no activity?

[Kevin Luttrell]

Hi BP,

I have a single member LLC in Indiana with no property or income in CA, but still have to pay the $800 tax since I'm the managing member living in CA. The LLC only owns 1 rental property and cash flow is pretty minimal, so this $800 tax hurts a lot more. I'm thinking about deeding the property out of the LLC into my personal name to avoid the CA tax. I'd like to keep the LLC open though just in case I need it for something in the future.

My question is, if I keep the LLC open, do I still have to file form 568 and pay the CA tax even if the LLC has no income or expenses?