What California Form 3522 (2023) Is For
California Form 3522 (2023) is the payment voucher used to submit the required annual LLC tax to the California Franchise Tax Board. This obligation applies to every California LLC that remains active or registered during the applicable tax year. The form supports basic filing requirements and helps business owners meet their ongoing tax responsibilities.
The voucher covers the flat $800 LLC tax, which differs from income taxes assessed through the LLC Return of Income. This payment applies to a limited liability company operating under California law or classified as a disregarded entity. The obligation remains in effect until the entity files cancellation documents with the California Secretary of State.
When You’d Use California Form 3522 (2023)
You use Form 3522 when paying the annual LLC tax due on the 15th day of the fourth month of your tax year. California LLCs formed by Articles of Organization or foreign entities holding a certificate of registration must follow this due date. Fiscal-year businesses must calculate their deadlines using the same timing rules.
The Franchise Tax Board requires a separate payment through this voucher rather than combining it with Form 568. Businesses using electronic payments through credit cards or online tools should not mail the voucher. The fee applies even when a business structure reports no taxable income for the period.
Key Rules or Details for 2023
California limited liability companies are required to make this payment regardless of their activity, revenue, or worldwide gross income. The annual LLC tax differs from the LLC fee paid using Form 3536 or Form FTB 3536. These payments are distinct franchise taxes administered under state statute.
A single-member LLC treated as a disregarded entity still pays this amount each year under the applicable filing requirements. Foreign entities doing business in California are subject to the same tax rules applicable to California LLCs. Payment continues until the Secretary of State processes a formal cancellation.
Step-by-Step (High Level)
- Step 1: Verification that a California LLC owes the California LLC tax begins with reviewing the Articles of Organization and the registration on file with the Secretary of State.
- Step 2: A proper review of available payment methods and applicable tax deadlines ensures the completion of the correct tax forms.
- Step 3: Obtain the correct Form 3522 for the applicable tax year to match the information reported on the entity’s tax return. Verification of business entity identifiers and California LLC information ensures alignment with state records.
- Step 4: The voucher must be completed using accurate entity numbers and taxable income details. Data required for calculating any LLC fee under Form FTB 3536 rules must also be provided.
- Step 5: The voucher is mailed only when the payment is submitted by check. Documentation supporting business licenses, compliance requirements, and future filings related to C corporations or disregarded-entity reporting should be retained.
Common Mistakes and How to Avoid Them
Processing issues often arise when required submissions contain preventable errors that disrupt proper posting. Specific filing problems can be addressed through corrective steps, which improve accuracy and reduce the need for follow-up notices from the Franchise Tax Board. Clear documentation also supports compliance with established procedures and regulations.
- Late Payment Submission: This mistake occurs when the annual LLC payment is submitted after the 15th-day deadline, and verification of the correct due date prevents delays.
- Incorrect Entity Numbers: This mistake occurs when business entity identifiers or FEINs are entered inaccurately. Accurate matching of state and federal records prevents posting errors associated with incorrect identifiers.
- Mismatched Tax Year Forms: This mistake occurs when Form 3522 is submitted for the incorrect year. Selecting the form that matches the applicable tax return year prevents misapplication.
- Combined Filings: This error occurs when payments are mailed with Form 568 or related income taxes, and separate submissions prevent the misapplication of franchise taxes.
What Happens After You File
The Franchise Tax Board posts the payment to your account once the voucher is processed. Processing time varies, but it generally completes within several weeks, depending on seasonal volume. Keep documentation showing your payment for audit or verification purposes.
Your LLC account reflects the payment for the specific tax year noted on Form 3522. You must still complete the LLC Return of Income when required and report the California total income. Continued obligations remain in effect until the Secretary of State receives proper cancellation filings.
Frequently Asked Questions
When is Form 3522 due for a California LLC?
The annual payment is due on the 15th day of the fourth month of the tax year. A California LLC must follow the filing requirements established under California law. Fiscal-year business entities use the same timing rules for compliance.
Does Form 3522 cover the same obligation as the LLC fee?
No, because the LLC fee is paid through Form FTB 3536 and depends on taxable income. Form 3522 only covers franchise taxes required for a limited liability company. Both payments may apply during the same tax return period.
Do disregarded entities still need to submit Form 3522?
Yes, because a disregarded entity remains responsible for annual franchise taxes under California corporation franchise rules. The federal income tax classification does not alter this requirement. State obligations apply regardless of pass-through taxation treatment.
Can Form 3522 be paid electronically?
Yes, electronic payments are accepted through the California Tax Service Center using a credit card or similar method. Filers should not mail the voucher after submitting it online. Duplicate submissions may complicate the preparation of annual reports and account posting.
Does closing an LLC end future $800 payments?
No, because payments continue until cancellation documents reach the California Secretary of State. Filing only Form 568 or related forms does not exempt a business from franchise taxes. Proper LLC formation and termination prevent additional California LLC costs.
