Question

Do I Apportion Business Income to California & Michigan?

Forum|Forum|3 years ago
February 15, 2023
1 reply
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My SMLLC is organized in California. All business activity (IT Consulting Services; 554600) is conducted in California. No tangible product is sold. My clients are California-based companies & Michigan-based companies. TurboTax State (California) is showing 100% of BI attributed to California (in Schedule C - pages 1/2 CA Form 568).

1. Does business income need to be apportioned to California and Michigan?

2. If 100% of BI is sourced and apportioned to California, do I need to submit CA Schedule R with Form 568 for LLCs?

Not A Product Question

D

DavidD66

You do not need to allocate any of your business income to Michigan. Unless you have some other reason to file a Michigan tax return, you don't need to file one.

You do not need to file Schedule R with Form 568.

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