What is the form 3522?
Form 3522 is a form used by LLCs in California to pay a business’s annual tax of $800. All LLCs in the state are required to pay this annual tax to stay compliant and in good standing.
Do California corporations have to pay the $800?
Every corporation that is incorporated, registered, or doing business in California must pay the $800 minimum franchise tax.
Can I pay FTB 3522 electronically?
Check with your software provider to determine if they support EFW for annual tax payments. Make a payment online using Web Pay for Businesses. For more information, go to ftb.ca.gov/pay. If paying by Web Pay, do not file form FTB 3522.
What is the difference between 3536 and 3522?
The 3522 is for the 2020 annual payment, the 3536 is used during the tax year to pay next year’s LLC tax. Form 3536 only needs to be filed if your income is $250,000 or more. You use Form FTB 3522, LLC Tax Voucher to pay the annual limited liability company (LLC) tax of $800 for taxable year.
How do I avoid LLC tax in California?
The only way to avoid the annual $800 California franchise fee is to dissolve your company, file a ‘final’ income tax return with the FTB and to submit the necessary paperwork. Once your company no longer exists, neither does your liability protection.
Why is California LLC fee so high?
Due to the multitude of tax disadvantages that burden the California LLC, it is a very expensive means to operate a business. It is therefore typically in the owners best interest to form a corporation, rather than a LLC, unless the entity is being formed to hold real estate.
What is the 800 fee for California corporations?
California law generally imposes a minimum franchise tax of $800 on every corporation incorporated, qualified to transact business, or doing business in California. A corporation that incorporates or qualifies to do business in California is exempt from paying the minimum franchise tax in its first taxable year.