What California Form 3522 (2020) Is For
California Form 3522 is the payment voucher LLCs use to pay the state’s mandatory $800 annual tax. This tax applies whether your LLC made a profit, earned no revenue, or was completely inactive. As long as the LLC is doing business in California or is registered with the Secretary of State, the annual tax is due.
Form 3522 works like a payment stub. It ensures the Franchise Tax Board (FTB) credits the $800 payment to the correct LLC account by capturing key identifying information such as the California Secretary of State (SOS) file number and FEIN. This voucher is strictly for the $800 annual tax—not the income-based LLC fee or Form 568 filing obligations.
When You’d Use California Form 3522 (2020)
Most LLCs use Form 3522 for their 2020 tax year if their taxable year begins during 2020. For calendar-year LLCs, the payment is due April 15, 2020. Fiscal-year LLCs must pay by the 15th day of the 4th month after the start of their taxable year.
You also use Form 3522 for late payments. If you missed paying the annual tax, submit the appropriate year’s voucher with your payment as soon as possible. Do not use a 2020 voucher to pay 2019 taxes or later years—each tax year requires its own Form 3522.
Foreign LLCs doing business in California must also pay as soon as they register or begin conducting business—even if their normal deadline has already passed. There is no amended version of this form because it only carries payments; errors are corrected by sending the correct year’s voucher.
Key Rules or Details for 2020
The $800 Annual Tax Applies Regardless of Income
The annual tax is a flat obligation. It applies even if:
- The LLC had zero income
- The LLC conducted no operations
- The LLC operated at a loss
The only way to stop the annual tax is to formally cancel the LLC with the Secretary of State.
Timing Rules
The $800 tax is prepaid. It’s due in the early part of the tax year, not after filing Form 568. Calendar-year entities owe the tax by April 15, 2020.
Use Form 3522 Only for the Annual Tax
Do not use Form 3522 to pay:
- The LLC fee
- Income tax
- Prior-year balances without the correct-year voucher
Form 3522 strictly covers the annual tax.
Payment Methods
If you pay electronically—via Web Pay, credit card, or Electronic Funds Withdrawal—do not mail Form 3522. The voucher is only for check or money order payments.
First-Year Exemption Does Not Apply in 2020
The first-year LLC tax exemption applies only to taxable years beginning on or after January 1, 2021. LLCs formed or registered in 2020 still owe the full $800 annual tax.
Special Rules for Short-Year and Series LLCs
- If your taxable year is 15 days or less and no business occurred, the annual tax does not apply.
- Each series in a series LLC owes its own $800 annual tax and must file a separate Form 3522.
Step-by-Step (High Level)
Step 1: Identify Your Due Date
Calendar-year LLCs pay by April 15, 2020. Fiscal-year LLCs count four months from the start of their taxable year.
Step 2: Obtain the Correct-Year Form
Download the 2020 version of Form 3522 from ftb.ca.gov. Never substitute forms across tax years.
Step 3: Gather LLC Information
You’ll need:
- LLC legal name
- SOS file number
- FEIN
- Mailing address
- Telephone number
Step 4: Complete the Voucher
Enter your taxable year dates, entity information, and “$800.00” in the payment box. Use blue or black ink and write names exactly as registered with the Secretary of State.
Step 5: Prepare Your Check
Make the check payable to “Franchise Tax Board.” On the memo line, write:
- SOS file number
- FEIN
- “2020 FTB 3522”
Step 6: Mail the Voucher and Payment
Detach the voucher and mail it with your check (no staples) to the FTB address listed on the form. If you pay electronically, skip mailing entirely.
Step 7: Keep Records
Save copies of the form and proof of payment for at least four years.
Common Mistakes and How to Avoid Them
- Thinking the annual tax doesn’t apply because the LLC had no income
The $800 tax applies until the LLC is formally cancelled. - Using the wrong year’s voucher
Always match payment to the correct-year Form 3522. - Mailing Form 3522 after paying electronically
Electronic payments require no voucher. - Paying the annual tax with Form 568
The annual tax must be paid separately using Form 3522. - Missing required identifying information
Always include both the SOS number and FEIN on the form and check. - Failing to dissolve an inactive LLC
Without cancellation, the annual tax continues indefinitely. - Paying one check for multiple years
Use separate vouchers and checks for each tax year.
What Happens After You File
Once your payment is mailed or submitted electronically, the FTB credits it to your LLC’s account. Routine payments do not trigger confirmation notices; the payment simply posts.
If the FTB cannot match your payment—due to missing identification numbers or wrong-year forms—they will issue a notice requesting clarification or assessing penalties.
Late payments result in:
- A 5% initial penalty
- Additional 0.5% monthly penalties (up to 25%)
- Interest from the due date
Payment of the annual tax does not replace the need to file Form 568 or submit the LLC fee if applicable. If the LLC fails to pay or file required returns, the state may suspend or forfeit its rights, affecting legal standing and liability protections.
FAQs
Do we owe the $800 tax if we didn’t operate in 2020?
Yes. The annual tax applies regardless of activity until the LLC is formally dissolved with the Secretary of State.
We started doing business in California mid-year. When do we pay?
Pay immediately upon beginning business or registering, using the 2020 Form 3522, even if the standard due date has passed.
Can we pay multiple years with one Form 3522?
No. Use a separate voucher and payment for each tax year.
Is the annual $800 fee waived for first-year LLCs in 2020?
No. The exemption begins with taxable years starting in 2021.
We paid online. Should we still mail Form 3522?
No. Web Pay and other electronic methods replace the voucher entirely.
What if we receive a penalty notice but paid on time?
Gather proof of timely payment—such as a bank record or postmarked envelope—and contact the FTB for review.
For the official form, visit: https://www.ftb.ca.gov/forms/2020/2020-3522.pdf
