How to Pay the Annual $800 California LLC Fee

The annual $800 Limited Liability Company (LLC) fee in California, often referred to as the annual franchise tax, is part of maintaining an LLC’s good standing with the California Franchise Tax Board (FTB). Understanding this fee, from who is required to pay it to the various payment methods, is important for compliance.

Understanding the Fee

The $800 LLC fee is an annual tax imposed by the California Franchise Tax Board (FTB) on all limited liability companies that are either registered with the California Secretary of State (SOS) or are doing business within California. This obligation applies irrespective of the LLC’s income level, even if the entity is inactive or operating at a loss. For newly formed LLCs, the first $800 payment is due by the 15th day of the fourth month following the LLC’s formation or registration with the Secretary of State. For example, if an LLC is formed in January, the initial payment would be due by May 15th. Subsequent annual payments are generally due by April 15th of each year, aligning with the calendar year tax schedule.

Preparing for Payment

Before initiating payment of the annual $800 LLC fee, gathering specific information and documentation is important to ensure a successful and accurate transaction. A primary piece of identifying information is your LLC’s 12-digit Secretary of State (SOS) file number. This unique identifier is assigned upon registration and can typically be found on your initial registration documents or by utilizing the California Secretary of State’s online business search tool. You will also need the Federal Employer Identification Number (FEIN) for your LLC, or if applicable, the Social Security Number (SSN) of the responsible party.

Determining the exact amount due is also important, which generally is $800, but may include penalties and interest if previous payments were late. The chosen payment method, whether it involves bank account details for direct debit or credit card information, should be readily available.

When opting to mail a payment, FTB Form 3522, the LLC Tax Voucher, is required. This form serves as the official payment voucher for the annual $800 LLC tax. Key information that must be accurately entered on Form 3522 includes the LLC’s legal name, the SOS file number, the applicable tax year, and the payment amount. You can typically download a blank Form 3522 directly from the FTB’s website by navigating to their forms page and selecting the appropriate tax year and entity type.

Submitting Your Payment

Once all necessary information and documents have been gathered, you can proceed with submitting your $800 LLC fee payment to the California Franchise Tax Board (FTB). Several convenient methods are available for payment submission.

One common method is online payment through the FTB’s Web Pay service for businesses. To use this service, you will typically navigate to the FTB’s website, locate the Web Pay portal, and select the “LLC” entity type. You will then be prompted to input your LLC’s Secretary of State (SOS) file number and your Federal Employer Identification Number (FEIN). After entering the payment amount and selecting the desired payment date, you will confirm the transaction, often receiving an immediate confirmation number.

Alternatively, payment can be made via mail using Form 3522, the LLC Tax Voucher. If paying by check or money order, it should be made payable to the “Franchise Tax Board.” It is important to write your LLC’s SOS file number and the tax year on the check or money order to ensure proper application of the payment. The completed Form 3522, along with your payment, should be mailed to the Franchise Tax Board, typically to P.O. Box 942857, Sacramento, CA 94257-0651.

Electronic Funds Withdrawal (EFW) is another option, often available through tax preparation software when filing your LLC’s tax return. This method allows you to schedule a payment directly from your bank account as part of the electronic filing process. While convenient, it is important to verify that your chosen tax software supports EFW for this specific annual tax payment. Using a credit card is also an option through third-party processors, though a convenience fee usually applies.

Verifying Payment and Keeping Records

After submitting your annual $800 LLC fee, it is important to verify that your payment was successfully processed by the California Franchise Tax Board (FTB). The FTB often provides online tools where you can check your payment history or account status. Additionally, if you paid online, look for confirmation emails or receipts that contain a confirmation number, which serves as immediate proof of your submission.

Monitoring your bank statements is another way to confirm that the payment has been debited from your account. This provides an additional layer of verification that the transaction was completed. In the event of any discrepancies or if the payment does not appear to have been processed, contact the FTB promptly to investigate the issue.

Maintaining thorough records of your payment is important for future reference and compliance. This includes saving confirmation numbers, recording the exact payment date and amount, and keeping copies of any submitted forms, such as Form 3522, or images of checks. These meticulous records can be invaluable in resolving any potential payment disputes or inquiries from the FTB.