What California Form 3522 (2016) Is For
California Form 3522 (2016) is the payment voucher LLCs use to submit the mandatory $800 annual LLC tax to the Franchise Tax Board (FTB). It is not a tax return—its only function is to accompany your payment and ensure the FTB credits it to the correct year and account.
The $800 annual tax applies to nearly every LLC that is organized in California, registered with the Secretary of State, or doing business in the state. It is owed even if the LLC has no income, no activity, or operates at a loss. The amount is separate from the LLC fee reported through Form 568 and may be deductible on the federal return as a business expense, but not on the California return.
When You’d Use Form 3522 (2016)
Use Form 3522 any time you need to pay the annual LLC tax for the 2016 tax year. For calendar-year LLCs, the 2016 payment was due April 18, 2016 (extended due to a federal holiday). For fiscal-year LLCs, the deadline was the 15th day of the fourth month after the start of the taxable year.
Newly formed LLCs begin their first taxable year on the date their articles of organization are filed. Foreign LLCs begin their year when organized in their home state but owe the tax once they register or start doing business in California. If you pay late, you should still use the correct-year voucher to avoid misapplied payments.
Because Form 3522 is strictly a voucher, you never amend it. If your LLC’s reported income or member allocations need correction, those changes occur on an amended Form 568—not through Form 3522.
Key Rules or Details for the 2016 Tax Year
Who must pay the $800 tax
For 2016, the tax applies if an LLC is:
- Organized in California
- Registered with the California Secretary of State
- Doing business in California under state rules
LLCs must continue paying this tax until they formally dissolve or cancel with the Secretary of State.
First-year exemption
LLCs formed during 2016 received a first-year exemption and did not owe the $800 tax for 2016. The obligation began with the LLC’s second taxable year. This exemption applies only to first-year entities, not to later years or partially active companies.
Tax-exempt LLCs
LLCs qualifying under IRC §501(c)(2) or §501(c)(25) and certain California nonprofit provisions are exempt from the annual tax.
Series LLCs
Each series within a series LLC must pay its own $800 tax. The first series uses the main LLC’s SOS file number; other series use zeroes and receive an assigned number from the FTB.
Step-by-Step (High Level)
Step 1: Confirm whether you owe
Determine if the LLC was active, registered, or doing business during 2016. If newly formed that year, confirm whether the entity qualifies for the first-year exemption. Tax-exempt LLCs do not owe.
Step 2: Determine the due date
Calendar-year LLCs owed the tax by April 18, 2016. Fiscal-year LLCs count four months from the start of their taxable year.
Step 3: Get the correct voucher
Download the 2016 Form 3522 from the FTB website. Using the correct-year form ensures your payment is posted accurately.
Step 4: Fill out the voucher
Provide:
- LLC name
- SOS file number
- FEIN
- Mailing address
- Taxable year
- Payment amount ($800)
Use black or blue ink and ensure all numbers match state records.
Step 5: Prepare your payment
Make checks payable to Franchise Tax Board. Write the SOS file number, FEIN, and “2016 FTB 3522” on the check. Payments must be drawn on a U.S. financial institution.
Step 6: Mail the form and payment
Send the voucher and check to:
Franchise Tax Board
PO Box 942857
Sacramento, CA 94257-0531
If paying online through Web Pay or by credit card, do not mail Form 3522.
Step 7: Keep your records
Retain copies of the voucher, proof of payment, and bank confirmations for at least four years in case the FTB requests documentation.
Common Mistakes and How to Avoid Them
- Assuming inactive LLCs owe nothing
The $800 tax applies even to LLCs with zero income or activity until the entity formally cancels. - Missing the due date
The annual tax is due in the fourth month of the year, not when Form 568 is filed. - Ignoring the first-year exemption
LLCs formed in 2016 should not pay for their first year but must pay starting in 2017. - Incomplete or incorrect voucher
Missing SOS or FEIN data can delay processing. - Using the wrong year’s form
A 2016 tax payment must be sent with the 2016 voucher. - Duplicating payments
Do not mail Form 3522 if paying online. - Confusing Form 3522 with Form 568
Form 3522 is a payment voucher only; Form 568 is the annual LLC tax return.
What Happens After You File
Once the FTB receives the payment and voucher, it applies the $800 to the LLC’s account. If the payment is late, the FTB assesses penalties and interest from the original due date. The penalty generally includes 5% of the unpaid amount plus 0.5% per month, up to a 25% maximum, with daily interest added.
Repeated nonpayment can lead to FTB or Secretary of State suspension, preventing the LLC from conducting business, entering contracts, or defending itself in court. Paying the annual tax does not satisfy the requirement to file Form 568—you must still file the annual return by its due date.
FAQs
Do I owe the $800 tax if my LLC had no income in 2016?
Yes. The annual tax applies regardless of income or activity unless your LLC qualifies for the first-year exemption or is tax-exempt.
I formed my LLC in 2016—do I owe the tax?
No. LLCs formed in 2016 are exempt for that year but owe starting with their 2017 taxable year.
Can I pay the $800 tax online?
Yes. You may pay using Web Pay for Businesses or a credit card. Do not mail Form 3522 if paying electronically.
What is the late payment penalty?
The penalty is 5% of the unpaid tax plus 0.5% per month, up to 25%, with interest accruing daily.
Do I owe the $800 tax if I’m closing my LLC?
Yes, through the year of cancellation. You remain liable until you file a final Form 568 and cancel with the Secretary of State.
Is the $800 tax the same as the LLC fee?
No. The annual tax is a flat $800. The LLC fee is based on California income and is reported on Form 568.
Do SMLLCs owe the annual tax?
Yes. Single-member LLCs must pay the $800 tax each year and file Form 568, even if they are disregarded for federal tax purposes.
