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Nonresident partner/member (foreign LLC’s) may not be doing business in CA

An LLC considered doing business in California at any time during the year is required to file a return and must disclose gross income and deductions of the entity, the number of members, their identification, and whether they are a California resident or nonresident member. A Schedule K-1 is required to be provided to each member who held an interest at any time during the year in the LLC.

A nonregistered foreign LLC that is solely a nonresident partner/member of another pass-through entity would not be considered to be doing business in California if their membership is only for a portion of a year, and the pass-through entity did not do business in California for the portion of the year they were a member.

Full Tax News Article 

 www.ftb.ca.gov/professionals/taxnews/Editions/2017/July.shtml#Article11

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