What California Form 8453-LLC (2020) Is For
California Form 8453-LLC is the signature authorization required when an LLC electronically files its 2020 California income tax return. It allows the Electronic Return Originator (ERO)—usually your tax preparer or software provider—to transmit your LLC’s Form 568 to the Franchise Tax Board (FTB). By signing it, the LLC’s authorized member or manager, the ERO, and any paid preparer certify that the return is accurate and authorize its electronic submission.
The form also enables electronic funds withdrawal (EFW) for payments due with the 2020 return and optional advance payments for the 2021 annual tax or estimated LLC fee. Form 8453-LLC is not mailed to the FTB. Instead, the ERO must retain it for the duration of the California statute of limitations.
When You’d Use California Form 8453-LLC (2020)
You use Form 8453-LLC whenever you e-file a 2020 Form 568. California requires business entities using tax software to e-file their original or amended returns unless they qualify for a waiver. Therefore, most LLCs must complete this form.
Calendar-year LLC returns for 2020 were generally due March 15, 2021, or April 15, 2021 for single-member LLCs owned by individuals. The authorized member or manager signs Form 8453-LLC after reviewing the completed return but before transmission. The FTB’s electronic acknowledgment—not Form 8453-LLC—is your official filing proof.
For amended returns, a new 8453-LLC is required. Extension filings also require the form when the actual return is transmitted. Multiple LLCs may be covered by one authorization if accompanied by a schedule listing all entities and initialed by the signer.
Key Rules or Details for the 2020 Filing Year
Mandatory E-File Rule
LLCs using tax preparation software must e-file their Form 568. Only entities that receive an approved waiver may paper file. Form 8453-LLC is required whenever the return is transmitted electronically.
Signature Requirements
Three signatures may be required:
- Authorized member or manager (Part V) — must review the completed return before signing.
- Electronic Return Originator (Part VI) — confirms proper authorization and recordkeeping.
- Paid preparer — signs in Part VI unless they are also the ERO.
All signatures must be obtained before the return is transmitted.
Record Retention
The ERO must retain the signed Form 8453-LLC (original or digital copy) for at least four years from the later of the return’s due date or the filing date. The LLC should also keep its own signed copy plus Form 568 and its schedules.
Electronic Funds Withdrawal
Parts II and III authorize EFW for:
- 2020 tax and fee payments (Part II), and
- 2021 annual tax or estimated fee prepayments (Part III).
The LLC selects the withdrawal dates, which must be on or before the relevant due dates to avoid penalties. To stop a withdrawal, you must contact FTB e-Programs at least two business days prior.
Banking Information Rules
Routing numbers must be nine digits with valid prefixes, and account numbers may include letters and hyphens but no spaces or symbols. Incorrect banking details can result in rejected payments, penalties, and interest.
Payment Alternatives
If not using EFW, LLCs may pay using FTB Web Pay, credit card payments, or by mailing Form FTB 3588 with a check. Do not authorize EFW and mail a payment voucher—choose one method only.
Step-by-Step (High Level)
Step 1: Prepare Form 568
Complete the 2020 LLC return using approved e-file software. Form 8453-LLC cannot be finalized until return figures are complete.
Step 2: Fill Out Part I — Tax Return Information
Enter the LLC name and SOS or FEIN number. Transfer the totals from the return:
- Total income
- Ordinary income
- Tax and fee due
- Overpayment
- Total amount due
All figures must match the completed Form 568.
Step 3: Complete Part II — Current Year EFW (If Applicable)
Check the payment authorization box and enter the withdrawal amount and date for 2020 taxes and fees. Use a date on or before the return’s due date.
Step 4: Complete Part III — Future Year EFW (Optional)
Add the amounts and withdrawal date if you choose to prepay the 2021 annual tax or estimated fee. This is optional and separate from the current year’s payment.
Step 5: Complete Part IV — Banking Information
If using EFW, enter the routing and account numbers and select the account type. Verify the information directly from your checks.
Step 6: Authorized Member or Manager Signs Part V
The signer must review the return, sign Part V, and provide their title. The signature must be dated before transmission.
Step 7: ERO and Preparer Sign Part VI
The ERO signs and certifies compliance with e-file rules. If the paid preparer is different from the ERO, both must sign.
Step 8: Transmit and Retain Documentation
After all signatures are obtained, the ERO transmits the return electronically. Form 8453-LLC itself is not transmitted. The acceptance date should be recorded on the retained form.
Step 9: Keep Records for Four Years
The LLC must retain copies of Form 8453-LLC, Form 568, all schedules, and the federal return. These are needed in case of an FTB inquiry or audit.
Common Mistakes and How to Avoid Them
- Mailing Form 8453-LLC to the FTB — this is a retention-only document.
- Signing before the return is finalized — always review the complete Form 568 first.
- Incorrect banking information — verify routing and account numbers carefully.
- Double-paying — avoid authorizing EFW and mailing Form FTB 3588.
- Selecting late withdrawal dates — schedule payments on or before the due date.
- Missing signatures — all required signers must complete their sections before transmission.
- Mixing current and future year payments — keep Part II and Part III separate.
- Failing to retain documentation — maintain records for at least four years.
What Happens After You File
The ERO sends the electronic return to the FTB, which then issues an electronic acknowledgment. This acceptance notice, usually available within 24–48 hours, is your official filing proof. If the return is rejected, you must correct the issues and may need a new Form 8453-LLC if financial figures change.
If you authorized EFW, the payment processes on the selected date. Rejected payments can trigger penalties, so monitor your account. Refunds are processed after the FTB completes its review, with direct deposit arriving more quickly.
During the four-year statute of limitations, the FTB may request Form 8453-LLC, Form 568, or other supporting documents. Timely responses help avoid delays or assessments. Any future-year payments scheduled in Part III will withdraw on the specified dates unless cancelled in advance.
FAQs
What is Form 8453-LLC and why is it required?
It is the e-file authorization document for transmitting Form 568 electronically. California requires e-filing when the return is prepared with software, making Form 8453-LLC mandatory for most LLCs.
Do I mail Form 8453-LLC to the FTB?
No. The form is never mailed unless specifically requested. The ERO keeps the signed copy for four years.
Can I pay my LLC’s taxes through electronic funds withdrawal?
Yes. You can authorize payment for 2020 and optionally schedule 2021 payments. Be sure to enter accurate banking information and choose withdrawal dates that meet payment deadlines.
What happens if I enter incorrect account information?
The withdrawal will be rejected, and the FTB will issue a notice requiring payment plus penalties and interest. Always verify your routing and account numbers directly from a check.
Who must sign the form?
An authorized member or manager signs Part V. The ERO signs Part VI, and the paid preparer signs if different from the ERO.
How long should we keep Form 8453-LLC?
Retain it for at least four years, or longer if the return is linked to a federal audit or extended examination period.
