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LLC not registered to do or doing business in CA. Royalty income only. Lacerte is generating F. 568. How to force F. 565?

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This is controlled based on the Partnership Entity Type on the Schedule B line 1. If the entity type is Limited Liability the 568 for CA would generate. There is not a way to force the 565. 

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This is controlled based on the Partnership Entity Type on the Schedule B line 1. If the entity type is Limited Liability the 568 for CA would generate. There is not a way to force the 565. 

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 @Charlene_At_Intuit Maybe this needs to go into the desired improvements. Page 6 of the 565 instructions https://www.ftb.ca.gov/forms/2018/18_565bk.pdf read as:
LLCs
LLCs may be classified for tax purposes as a partnership, a corporation,
or a disregarded entity. The LLC must file the appropriate California tax
return for its classification. LLCs classified as a:
• Partnership file Form 568, see below for more information on LLCs
classified as partnerships.
• General corporation file Form 100.
• S corporation file Form 100S.
• Disregarded entities, see General Information R,
Check-the-Box Regulations.
If your LLC is classified as a partnership, it must file Form 568 if any of
the following apply:
• The LLC does business in California.
• The LLC is organized in California.
• The LLC is organized in another state or foreign country, but
registered with the California SOS.
• The LLC has income from California sources.
Exception: Nonregistered foreign (i.e., not organized in California) LLCs  and LPs (excluding disregarded entities/single member LLCs) that are not doing business, but are deriving income from California or filing to report an election on behalf of a California resident file Form 565 instead of Form 568.
Nonregistered foreign LLCs that are members of an LLC doing business
in California or general partners in a limited partnership doing business
in California are considered to be doing business in California and
should file Form 568. (See Exceptions to Filing Form 568 in the 2018
Form 568 Limited Liability Company Tax Booklet, General Information D,
Who Must File).

@Charlene_At_Intuit Note the Exception above.

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