What California Form 3522 (2016) Is For
California Form 3522 (2016) is the payment voucher LLCs use to submit the required annual $800 tax to the California FTB. This tax applies even when an LLC has minimal activity and still needs to prepare additional tax forms for other filings. The voucher helps ensure the payment is correctly linked to the proper account for the taxable year 2015.
This form is not a traditional tax return and does not report income taxes or financial information. It is the approved method for transmitting the fixed payment amount to the California Franchise Tax Board. LLC owners must maintain organized records because future filings, including Form 568, may reference previous voucher submissions.
When You’d Use California Form 3522 (2016)
LLCs use this voucher whenever they owe the fixed annual tax for the tax year, even if operations were limited. A payment must still be submitted when the LLC remains active with the California Secretary of State. The same rule applies regardless of whether federal forms such as Schedule C or Schedule E are required for that year.
Taxpayers also use this voucher when paying late, provided they select the correct year, such as Form 2015 FTB 3522. Choosing the correct version ensures that payments are applied to the intended taxable year, 2015. Filing obligations for Form 568 remain separate, which means signing up for electronic payment options does not replace the need for accurate voucher preparation.
Key Rules or Details for 2016
The annual tax applies to nearly every LLC operating, registered, or doing business in California, regardless of whether it has income. An LLC continues to owe this payment until it files the appropriate cancellation documents and receives final confirmation of cancellation. New LLCs may qualify for limited exemptions; however, these exemptions do not apply once the initial period has passed.
LLCs tied to exempt organizations may receive special treatment under California guidelines. Entities using certain services must still complete the voucher accurately because automated systems do not replace state filing requirements. LLCs must also understand that online payment systems require an Intuit account or similar tools, but these remain independent from the core state filing expectations.
Step-by-Step (High Level)
- Step 1: This step involves reviewing exemption rules to determine whether the LLC is exempt from the annual payment for the current tax year.
- Step 2: This step establishes the correct due date for the taxable year 2015 and confirms alignment with the LLC’s fiscal calendar.
- Step 3: This step involves downloading the voucher, confirming that it matches Form 2015 FTB 3522, and registering for updates when TurboTax Business is used for reminders.
- Step 4: This step requires accurate entry of the LLC name, file number, identification details, and mailing address to support proper posting and maintain organized filing records.
- Step 5: This step directs the submission of the voucher and verifies that the payment period recorded on the form is correct.
Common Mistakes and How to Avoid Them
Filing delays often originate from procedural oversights found in submissions. A clear understanding of these specific errors strengthens accuracy and prevents avoidable correspondence from the agency. Clear, verified documents provide reviewers with complete information during initial processing.
- Late Filing: This mistake occurs when forms are submitted after the deadlines, and filers must transmit all required documents before the stated due date.
- Missing Signatures: This error occurs when authorized signatures are missing, and filers must verify every signature block before submitting the return.
- Mismatched EIN Entries: This error occurs when the EIN on Form 568 differs from the one on the schedules, and filers must verify that the identifiers are identical across all materials.
- Omitted Attachments: This error occurs when required schedules are omitted, and filers must assemble all mandated attachments before submitting the return.
- Incorrect Payment Timing: This mistake occurs when payments are submitted with forms that require later remittance, and filers must adhere to the payment timetable.
What Happens After You File
The California Franchise Board processes the voucher and applies the tax to your LLC account. If the amount is correct and timely, no additional communication is generally issued. Any discrepancies may trigger mailed correspondence requesting clarification.
Late payments accrue penalties and interest beginning immediately after the due date. Unpaid balances may result in state actions, including the suspension of rights and privileges. LLC owners must resolve issues promptly to maintain compliance for future filings.
Frequently Asked Questions
Do I still owe the annual tax if my LLC showed no activity?
Yes, the payment is still required because the obligation applies to every registered LLC. The rule remains consistent even when activity is limited and unrelated municipal matters, such as public notices or updates from the City Council, occur.
Can I pay electronically instead of mailing the voucher?
Yes, electronic payments are accepted, including those made through systems used in conjunction with TurboTax Business. Mailing the voucher becomes unnecessary once the payment is confirmed, and filers should retain records similar to those kept for a public notices page.
Is Form 3522 the same as Form 568?
No, Form 3522 only submits the annual payment, while Form 568 reports financial information for the applicable year. Both filings remain separate functions, comparable to how planning projects and Administrative Use Permit actions operate under distinct procedures.
Does federal filing activity affect this requirement?
No, federal schedules do not alter the annual obligation, as this payment is determined under California law. Local procedures, such as Planning Commission reviews or Administrative Design Review decisions, also do not influence the mandated amount.
What happens if an LLC is closing?
The payment must still be submitted for the final year before cancellation documents are completed. This approach mirrors municipal procedures, in which designated steps must be completed before a Hearing Date is scheduled with a Planning Hearing Officer.
