What California Form 8453-LLC (2016) Is For
California Form 8453-LLC (2016) is the authorization document LLCs must sign when electronically filing Form 568 through an Electronic Return Originator (ERO) or tax software. It confirms that an authorized member or manager reviewed the LLC’s return and allows the ERO to transmit the return to the Franchise Tax Board (FTB). When electronic funds withdrawal is used, Form 8453-LLC also authorizes the FTB to collect tax payments directly from the LLC’s bank account.
Although the form confirms your approval, it is not proof of filing. Actual proof comes from the FTB’s electronic acknowledgement after the return is accepted. Form 8453-LLC must be signed before transmission and retained by both the LLC and the ERO for at least four years.
When You’d Use California Form 8453-LLC (2016)
Form 8453-LLC is required whenever an LLC e-files its 2016 Form 568. The ERO prepares the return, provides the completed authorization form, and obtains your signature before submitting anything to the FTB. For 2016, LLCs taxed as partnerships had a March 15, 2017 deadline, and SMLLCs owned by individuals generally followed the April 18, 2017 individual deadline.
If you e-file late (even under California’s automatic extension), the same authorization form applies. For amended returns that are e-filed, a new Form 8453-LLC must be signed before transmission. When scheduling electronic payments—whether for the 2016 liability or for the upcoming year’s annual tax—withdrawal dates must be set carefully because cancellations require at least two business days’ notice.
Key Rules or Details for the 2016 Tax Year
Who must sign
Only an authorized LLC member or manager may sign the form. Signing certifies that the return is complete, accurate, and approved for e-filing. Without this signature, the return cannot be transmitted and is considered incomplete.
What the signature authorizes
By signing Form 8453-LLC, the authorized signer confirms:
- the return information is accurate
- permission for the ERO to transmit the return
- authorization for the FTB to withdraw electronic payments (if selected)
- consent for the FTB to share processing or refund status updates with the ERO
ERO and preparer obligations
The ERO must verify the return, obtain your signature, sign the authorization form, provide copies, and retain the signed document for four years. If a paid preparer (who is not the ERO) completed the return, that person must also sign under penalties of perjury.
Record retention and banking requirements
LLCs and EROs must keep the signed form, a complete return copy, and all schedules for at least four years. If your LLC opts to pay electronically, routing and account numbers must be accurate. The routing number must be nine digits and should be verified using a check or bank statement—not a deposit slip.
Step-by-Step (High Level)
Step 1: Prepare the LLC return
Your ERO or tax software completes Form 568 and related schedules, including Schedule K-1 (568) for each member, if applicable. Ensure the return is final before signing anything.
Step 2: Review the completed return
Carefully check all entries—income, deductions, fees, member allocations, and prior payments. Errors at this stage can lead to amended filings later.
Step 3: Verify Part I of Form 8453-LLC
Your ERO enters total income, ordinary income or loss, the LLC fee, the annual tax, and balance due or refund information. Confirm these amounts match the exact lines on Form 568.
Step 4: Complete electronic payment options (optional)
If paying by electronic funds withdrawal, indicate the withdrawal amount and date in Part II. To schedule payment of your 2017 annual tax or estimated fee while filing the 2016 return, use Part III.
Step 5: Provide banking information (if applicable)
Complete Part IV for electronic withdrawals. Confirm the routing number, account number, and account type. Errors can cause failed payments and late-payment penalties.
Step 6: Sign Part V as an authorized member or manager
Read the declaration carefully and sign with your title and the current date. A return cannot be transmitted without this signature.
Step 7: Submit the signed authorization to your ERO
Faxed copies are acceptable. The ERO cannot transmit your return until the signed form is received.
Step 8: ERO and preparer sign
Your ERO completes Part VI. If a separate paid preparer helped prepare the return, they must also sign. The ERO must retain the form for four years.
Step 9: Retain your copy
Keep a copy of the signed Form 8453-LLC, the full Form 568, supporting schedules, and your federal return for at least four years.
Step 10: Receive acknowledgement
After transmission, your ERO receives an electronic acknowledgement showing the acceptance date. This is your proof of successful filing.
Common Mistakes and How to Avoid Them
- Signing before the return is final
- Review the complete return before signing Form 8453-LLC.
- Incorrect banking details
- Use a check or verified statement; deposit slips often contain internal routing numbers.
- Missing required signatures
- Ensure the authorized signer, ERO, and paid preparer (if any) sign.
- Part I amounts not matching Form 568
- Cross-check each number to avoid transmission issues.
- Insufficient funds for scheduled withdrawals
- Verify account balances before selecting a withdrawal date.
- Not keeping the signed form
- Retain the form for at least four years, as the FTB may request it during an audit.
- Confusing Form 8453-LLC with proof of filing
- Only the FTB’s electronic acknowledgement is official filing confirmation.
What Happens After You File
Once transmitted, the FTB receives and processes your LLC’s return. If electronic funds withdrawal was authorized, the payment is deducted on the selected date. Failed withdrawals—due to incorrect account numbers or insufficient funds—trigger FTB notices that may include penalties and interest.
During processing, the FTB may request clarification or supporting documentation if figures do not match Form 568. If your LLC is due a refund, it is issued after processing, with e-filed returns typically moving more quickly than paper filings. The FTB may request the signed Form 8453-LLC if the return is audited or questioned, so both the LLC and the ERO must retain it.
If a scheduled payment for the next year must be cancelled, contact FTB e-Programs Customer Service at least two business days in advance. After transmission, processing delays or refund information may be shared with the ERO, consistent with your authorization.
FAQs
Do I have to use Form 8453-LLC when e-filing?
Yes. All LLCs that e-file Form 568 must complete and sign Form 8453-LLC. It serves as the authorization for transmission.
Can I sign Form 8453-LLC electronically?
Acceptable signature methods depend on rules in FTB Publication 1345. Some electronic signatures may qualify, but you should confirm acceptable formats with your ERO.
What is the difference between Form 8453-LLC and the FTB acknowledgement?
Form 8453-LLC authorizes e-filing. The acknowledgement is issued after transmission and provides the filing acceptance date, which is your actual proof of filing.
What if I find errors after signing?
If the return has not yet been transmitted, prepare a corrected Form 568 and sign a new Form 8453-LLC. If already transmitted, file an amended return.
How long must I keep the signed form?
Retain Form 8453-LLC for at least four years from the filing date or original due date. Keep Form 568 and all schedules for the same period.
What if my bank rejects the withdrawal?
The FTB will issue a notice, often with penalties and interest. To avoid this, confirm routing and account numbers carefully before signing the authorization.
