What California Form 3522 (2018) Is For
California Form 3522 (2018) is a payment voucher used by every California LLC that owes the annual LLC tax for the 2018 tax year. This voucher enables the California Franchise Tax Board to accurately identify the business entity responsible for the required payment. An LLC uses this voucher when paying the $800 annual LLC tax required for ongoing California LLC compliance, as mandated by state statute.
The voucher supports the correct application of the payment, separate from the LLC Return of Income filed on Form 568. This annual LLC tax differs from the LLC fee, which depends on California’s total income or gross receipts. The requirement applies to California limited liability companies formed through articles of organization or foreign entities holding a certificate of registration.
When You’d Use California Form 3522 (2018)
An LLC uses this voucher when paying the $800 annual LLC tax required for ongoing California LLC compliance, as mandated by state statute. Filing requirements apply whether operations produced taxable income or whether the disregarded entity remained inactive during the fiscal year. The California Franchise Tax Board mandates these payments until cancellation with the California Secretary of State is completed.
Newly formed LLCs pay by the 15th day of the fourth month following their registration date with the Secretary of State. A single-member LLC or a multi-member entity must submit this voucher unless payment is made electronically through an approved system. Foreign entities beginning California business activities must also submit this payment promptly for that same tax year.
Key Rules or Details for 2018
The California LLC tax is prepaid and covers the privilege of operating during the designated year, regardless of taxable income. Even if a business structure experiences losses, the required payment must still be submitted to the Tax Board. The annual LLC tax remains in effect until proper cancellation steps are filed with the California Secretary of State.
This obligation is separate from the LLC fee reported using Form 3536 or Form FTB 3536 during each applicable fiscal year. Some California LLC costs may also include income taxes reported through Form 568 or other state tax forms. LLCs organized as disregarded single-member limited liability companies are still required to pay taxes unless exempt under California law.
Step-by-Step (High Level)
- Step 1: The taxpayer determines the payment deadline for the 2018 tax year by applying the 15th-day rule or the applicable fiscal year dates.
- Step 2: The filer obtains the correct Form 3522 so the business entity, such as a limited liability company, can file the required voucher properly.
- Step 3: The filer completes all identification fields, including Articles of Organization details, Statement of Information entries, and necessary federal income tax numbers.
- Step 4: The taxpayer calculates the required payment using California’s total income and gross receipts while accounting for California LLC costs and applicable income taxes.
- Step 5: The filer selects a payment method and either mails the voucher or pays electronically, while tracking essential tax deadlines to ensure accurate compliance.
- Step 6: The business maintains organized records, including operating agreement documents, and notes whether disregarded single-member limited liability companies have filed Form 8832.
Common Mistakes and How to Avoid Them
Filing issues arise when submissions contain avoidable procedural mistakes that interrupt standard processing. Identifying specific errors enhances compliance and facilitates the accurate posting of each tax return. Addressing these matters enhances document quality and reduces preventable delays.
- Missing Required Signatures: Filings arrive without signatures because pages are submitted unchecked, and filers must review all signature fields before completion.
- Mismatched Identification Numbers: EINs or SSNs appear incorrectly when entries differ from official records, and filers must confirm accuracy against federal income tax documentation.
- Incomplete Attachments: Required schedules or supporting documents are missing when packets are assembled hastily, and filers must include every referenced attachment.
- Incorrect Entity Classification: Forms conflict with an existing Form 8832 election when outdated classifications are used, and filers must verify current status before filing.
- Late Payment Submission: Payments arrive after the 15th day deadline when remittances are not scheduled, and filers must transmit funds within the required timeframes.
What Happens After You File
The California Franchise Tax Board processes the submitted voucher and updates the LLC’s account with the annual tax payment. Confirmation is verified through bank records or the MyFTB system, which allows business owners to confirm timely posting. No routine receipt is provided unless the agency identifies an issue requiring further contact.
If the payment is missing or delayed, the Tax Board sends a notice assessing penalties and interest. Providing proof of timely submission, such as payment confirmations or mailed documentation, may resolve specific disputes. Filing Form 568 remains necessary because this tax return fulfills separate obligations apart from the annual LLC tax payment.
Frequently Asked Questions
Are California LLCs required to make the annual payment even if they have no income?
Yes, the annual amount applies regardless of activity level because franchise taxes are based on a fixed rate, not income. This obligation remains in effect until proper cancellation documents are filed with the California Secretary of State.
Can the voucher be used for other filing obligations?
No, the voucher applies only to the annual payment, and additional tax responsibilities may involve separate submissions such as Form 100S or Schedule R. Other items in a tax return follow different California law requirements.
How do foreign entities manage this annual obligation?
Foreign entities are required to pay taxes once business activity commences, and compliance is subject to the same tax deadlines as those of domestic entities. These entities also maintain records such as the Statement of Information and Operating Agreement.
How are entity classifications treated for this requirement?
Corporations and entities with an Entity Classification Election under Form 8832 maintain separate obligations. Federal tax benefits or pass-through taxation rules do not change these requirements.
What internal records support accurate filing compliance?
Annual Reports, California Schedule K-1 (Form 568), and the Total Income Worksheet help confirm the figures used in filings. These records support accurate reporting of California LLC costs.
