What California Form 3522 (2011) Is For
California Form 3522 (2011) is the payment voucher LLCs use to submit the mandatory $800 annual LLC tax to the Franchise Tax Board (FTB). The form does not calculate tax or report business activity; it simply ensures your payment is properly credited to your LLC’s account. Every LLC organized, registered, or doing business in California must pay this annual tax until formally dissolved with both the Secretary of State and the FTB.
The annual tax applies even if the LLC earned no income, incurred losses, or remained inactive. The $800 payment is a flat charge for the privilege of maintaining an LLC in California. Form 3522 accompanies your check or money order when paying by mail, although electronic payment options are also available.
When You’d Use California Form 3522 (2011)
Form 3522 is used each year to make the annual $800 payment. For calendar-year LLCs, the deadline falls on April 15, which is the 15th day of the fourth month after the start of the taxable year. Fiscal-year LLCs must count four months from the beginning of their year to determine the due date. Newly formed LLCs in 2011 owed the annual tax in their first year; the later first-year exemption did not apply to 2011 tax years.
LLCs that register or begin doing business after the 15th day of the fourth month must pay the tax immediately. If you miss the deadline, Form 3522 is still used to submit your payment, although penalties and interest apply from the original due date. Because it is a payment voucher, there is no “amended” version—if you discover a missed payment for a past year, you submit the appropriate year’s Form 3522 and pay as soon as possible.
Key Rules or Details for the 2011 Tax Year
Annual tax obligation
Every LLC in California—active or inactive—owes the annual $800 tax until it dissolves and cancels with the state. Informally ceasing business does not stop the obligation. Only proper dissolution and final tax filing end the recurring charge.
Due date and prepayment
The annual tax is due early in the taxable year, not at year-end. For a calendar-year 2011 LLC, the tax was due April 15, 2011. This prepayment often surprises new owners and requires budgeting early in the year.
Separate from Form 568
Form 3522 and Form 568 serve different purposes. Form 3522 allows payment of the annual tax by April of the current year. Form 568 reports income and any LLC fee in March of the following year. Payment for the annual tax should not be sent with Form 568 because the forms are processed separately.
Penalties and late payment rules
If you miss the deadline, the penalty starts at 5% of the unpaid tax and increases by 0.5% each month, up to 25%. Interest also accrues. Late payments should include Form 3522 for the applicable year, and the FTB applies the payment to your account when received.
Step-by-Step (High Level)
Step 1: Obtain the correct year’s Form 3522
Download the 2011 version from the FTB or request a copy. Always use the version that matches the tax year you are paying.
Step 2: Complete LLC identification details
Fill in the LLC’s legal name, California Secretary of State file number, FEIN, and correct mailing address. Accuracy prevents payment misapplication.
Step 3: Prepare your $800 payment
Write a check or money order payable to “Franchise Tax Board.” Include on the memo line:
- your SOS file number
- your FEIN
- “2011 FTB 3522”
Do not staple the check to the voucher.
Step 4: Mail the voucher and payment
Detach the voucher portion and mail it with your payment to the address on the form. Allow time for delivery, or use tracking if close to the deadline.
Step 5: (Optional) Pay electronically
If you use Web Pay for Businesses or electronic withdrawal, do not mail Form 3522. The online payment system records the tax year and credits your account automatically.
Step 6: Keep proof of payment
Retain the voucher copy and payment confirmation for at least four years. These documents help resolve any future FTB inquiries.
Common Mistakes and How to Avoid Them
- Thinking the tax doesn’t apply to inactive LLCs
- The $800 tax is required every year until the LLC is formally dissolved with the state.
- Mixing up the annual tax and the LLC fee
- The annual tax is always $800, while the income-based LLC fee is reported later on Form 568.
- Missing the April 15 deadline
- Mark the due date separately from personal tax deadlines and consider scheduling online payments early.
- Using the wrong year’s voucher
- Always match the voucher year to the tax year being paid.
- Sending the annual tax with Form 568
- The annual tax must be paid through Form 3522, not with the LLC return.
- Incorrect SOS or FEIN numbers
- Mistakes can delay crediting and generate unnecessary notices.
- Failing to dissolve the LLC
- The annual tax continues until formal dissolution is completed with both agencies.
What Happens After You File
When the FTB receives your voucher and payment, it credits the $800 to your LLC’s account for the applicable tax year. Electronic payments generally post faster, while mailed payments can take longer. The FTB usually does not send a receipt unless requested, but account status can be checked through the FTB’s online business portal.
Timely payment helps keep your LLC in good standing. Failure to pay can lead to penalties, interest, and potential suspension of the LLC. A suspended LLC cannot legally conduct business, defend itself in court, or maintain liability protection. To restore good standing, all missing payments and returns must be filed.
The FTB does not send reminders for future annual tax payments, so LLC owners must track deadlines themselves. Records of payments, vouchers, and correspondence should be kept for at least four years.
FAQs
Do I owe the $800 tax even if my LLC had no income in 2011?
Yes. Income level does not affect the annual tax. It applies every year until the LLC is fully dissolved with both the Secretary of State and the FTB.
What is the difference between the $800 annual tax and the LLC fee?
The annual tax is a flat $800 due from all LLCs. The LLC fee applies only when total California-source income exceeds $250,000 and is paid with Form 568.
Can I send the $800 payment when filing Form 568?
No. The annual tax must be paid separately using Form 3522. Waiting until Form 568 is filed almost always results in late-payment penalties.
What if I missed the 2011 payment?
Pay it immediately using the 2011 Form 3522. You will owe the original $800 plus penalties and interest. Contact the FTB to verify your exact balance.
Can I pay online instead of mailing Form 3522?
Yes. Web Pay for Businesses allows direct payment without mailing the voucher. Do not mail Form 3522 if paying electronically.
Does the annual tax stop once I close my business?
No. The tax continues until you file dissolution and cancellation paperwork with both the Secretary of State and the FTB.
Do new LLCs get a first-year exemption in 2011?
No. The first-year exemption applies only to 2021–2023 formations. LLCs formed in 2011 owed the full $800 tax in their first year.
