Question: My California LLC generates income from its business inside California. One of the members is a nonresident of California and another member is a company formed in a state other than California. I heard that my California LLC must file a California Franchise Tax Board Form 3832. Is that true and if if so, what is the Form 3832?
Answer: If your California limited liability company is taxed as a partnership for U.S. income tax purposes then it must file an FBT Form 3832 with the California Franchise Tax Board when it files its first FBT Form 568. The completed FTB Form 3832 must contain the following:
- The names and social security numbers (SSNs), individual taxpayer identification numbers (ITINs), or federal employer identification numbers (FEINs) of all members that are people who are not residents of California and companies that are not formed in California.
- The signature of each nonresident member evidencing member’s consent to the jurisdiction of the State of California to tax that member’s distributive share of income attributable to California sources. If the nonresident member has a spouse or registered domestic partner (RDP), the spouse / RDP must also sign the Form FTB 3832.