Legal Question in Real Estate Law in California

Your question probably calls for accounting advice more than legal. However, I can give you a few very basic principles. First, California tax returns must be filed for both your husband and you, or you can file jointly, just as with the Federal government. California state income tax returns generally, but not always nor for all purposes, are the same as Federal, and you just attach a copy of the Federal tax returns to the California 540 income tax return form. Next, any LLC must file Federal and state tax returns as well - I believe the partnership tax return forms are used, because the Feds treat LLCs similarly to partnerships (usually, not always! - certain LLCs are taxed as corporations) for tax purposes -- check out Form 1065. I would strongly recommend any couple that owns two or more income properties, some of which are owned directly and some through an LLC, to establish a working relationship with an accountant that is well acquainted with the income-property business and can give advice on recordkeeping, handling depreciation, timely payment of the franchise tax, preparation of tax returns and other matters.