CA 568 K-1, Disregarded Entity

[amec]

The California K-1 for an LLC filing a 568 seems to have the opposite information on the client name and disregarded entity lines from federal. I don't think this makes sense?

The federal K-1 shows the client name (which is a disregarded entity) in box F. Then on line H2, it shows the name of the person who's return it will be filed on. I1 is Disregarded Entity.

The California K-1 shows the name of the person who's return it will be filed on at the top of the K-1 (where the owner name goes), and the disregarded entity name (actual owner) in 11b, DE owner's name.

Is this right? Is seems backwards. The federal K-1 seems consistent with the terms used on the form, while the CA K-1 does not.

[George4Tacks]

1065 k1 shows partnership name (the LLC or disregarded entity with an EIN) then it shows the real person with a SSN. NOTE: no where is the term LLC used on the 1065

568 k1 shows the real person with a SSN, then it shows the disregarded entity(not real person) with an EIN.. NOTE: this is not a 565, which does not use the term LLC. 

Yes, they be different, much like many things in California. 

[amec]

This is how it is supposed to be? I couldn't find anything in the instructions.

And it's not how the form reads.

11b DE owner's name - doesn't that indicate the real person, not the disregarded entity?

[George4Tacks]

The whole idea of DE is to be able to wash my hands of ever having held that asset. I don't own squat in that asset. If something goes kaflooey  with the asset, then what other stuff I got, I don't lose. The LLC owns that liability asset, not me. I own the rights to that LLC and I can reap the benefits if it goes whoopee, but play hot potato if it goes phfffttt!

Sorry for the technical terms, but I think I got the concept right. 

[amec]

An entirely accurate portrayal of the concept.