My client resides in California, and they, along with their spouse, own a Single-Member LLC (SMLLC). For federal tax purposes, they are treated as a Qualified Joint Venture. California is a community property state, and the IRS mandates that each spouse reports their respective share of income and deductions on their own separate Schedule C forms. However, when using Lacerte tax software, it is generating two Form 568s and imposing a $800 minimum franchise tax for each LLC, which is incorrect. Has anyone in California encountered similar issues, and if so, how did they resolve this problem?  At a high level, my primary need is for Lacerte to combine the two Schedule Cs information into one California Form 568.

Thank you in advance!