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California Form 3522: Filing Instructions (Updated: Oct. 2026)
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2026 California LLC Guides
California has a large business market with strong infrastructure and prime access to innovative industries. It’s an excellent state to form a Limited Liability Company (LLC) if you’re looking for a supportive business environment with ample growth opportunities.
All LLCs operating in California are required to pay an $800 Annual LLC Tax by filing the California Form 3522. This applies if you’ve filed your Articles of Organization or Certificate of Registration with the California Secretary of State (SOS). This also applies to foreign LLCs that conduct business in the state.
This mandatory tax fee must be paid to the California Franchise Tax Board (FTB) to maintain your good standing. This applies regardless of whether your LLC is active, inactive, or operating at a loss. In this article, I’ve discussed everything you need to know about the California Form 3522. You’ll learn who needs to pay it, when it’s due, and how to file it.
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California Annual LLC Tax (Form 3522) Overview
The California $800 Annual LLC Tax is a mandatory yearly fee imposed by the FTB. It applies to all Limited Liability Companies (LLCs) registered and/or conducting business in the state. Completing your filing ensures that your LLC remains in good standing.
The tax applies to ALL LLCs, whether active, inactive, or operating at a loss. You’ll need to formally file for dissolution if you want to stop paying. There are limited exceptions that I will cover later.
You’ll need to follow specific payment deadlines when completing your fee payment. I’ll give a quick overview below before providing detailed examples below.
Your initial payment is due by the 15th day of the 4th month after your LLC is officially formed, while your recurring annual LLC tax must be paid by the 15th day of the 4th month of your LLC’s taxable year.
Want to pay by mail? Complete Form FTB 3522, also known as the LLC Tax Voucher, and send it to the FTB along with a check or money order. When everything’s complete, you can pay online using the FTB’s Web Pay portal, via ACI Payments via credit card, or by completing an electronic funds withdrawal (EFW) method with an approved tax preparation software.
How To Pay The $800 Annual Franchise Tax By Mail
Note: You do NOT need to file Form FTB 3522 if you’ve paid using Web Pay or a credit card with my instructions below. Your payment will automatically be recorded when using these payment methods.
Form FTB 3522 is only required when paying by mail.
The instructions on Form 3522 do not specifically state if the form is needed when paying using EFW. Therefore, I suggest contacting the FTB to confirm the correct procedure.
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Paying the California $800 Annual Franchise Tax by mail requires Form FTB 3522: LLC Tax Voucher.
You’ll need to download the correct version of this form from the FTB website. Make sure it matches your tax year.
For example, use the 2026 Form FTB 3522 if you’re paying for the 2026 tax year.
Next, I’ll guide you on how to fill out the LLC Tax Voucher.
1. Downloading Form 3522 – LLC Tax Voucher
2. How To Fill Form 3522 – LLC Tax Voucher
- Enter “01/01/2026” as the beginning date and “12/31/2026” as the ending date if your LLC follows the calendar tax year. If your LLC uses a fiscal year instead, fill in your own beginning and ending dates in mm/dd/yyyy format.
- Type your legal business name into the LLC name field exactly as it appears on file with the California Secretary of State.
- Fill out the SOS file number field with your 12-digit California Secretary of State File Number. You can pull this from your approved Articles of Organization or look it up through the California Business Search website.
- Put your trade name in the DBA field if your LLC operates under one. If not, you can leave that section empty.
- Provide your 9-digit EIN issued by the IRS in the FEIN field.
- Complete the address field with your mailing address, including any suite number, room number, P.O. Box, or PMB number if applicable.
- Add your business phone number to the telephone field so the Franchise Tax Board can contact you if there’s an issue with the payment.
- Enter “$800.00” in the amount of payment field.
3. How To File The LLC Tax Voucher
Place your check or money order made payable to FRANCHISE TAX BOARD in the same envelope together with the detached bottom payment voucher from Form FTB 3522.
Make sure you write your California Secretary of State (SOS) file number, FEIN, and “2026 FTB 3522” on the check or money order itself. This helps the Franchise Tax Board correctly apply the payment to your LLC and reduces the chance of processing delays
Note: Do not staple any of the required forms and payments together.
You can then mail everything to:
FRANCHISE TAX BOARD
P.O. Box 942857
Sacramento, CA 94257-0531
I advise you to mail your payment a few days early to ensure that it’s processed on time and limit the risk of late payment penalties.
How To Pay California $800 LLC Tax Online Via WebPay
You can use the FTB’s Web Pay for Business system to pay your California $800 Annual Franchise Tax online.
1. Getting Started
Visit the FTB Web Pay for Businesses page and select “Limited Liability Company (LLC)” as your entity type.
Next, enter your Entity ID, which is your California Secretary of State (SOS) File Number. You can usually find it on your:
- Articles of Organization
- Acknowledgment Letter from the state
If you can’t find those documents, you can also look up that number by searching for your LLC on the California Business Search website.
Click “Login” to continue.
2. Entity Name And Payer’s Information
Enter your LLC name in the “Entity Name” field. Then enter your name as the payer.
Once done, click “Continue” to proceed.
3. Navigate To Annual Tax Payment
Select “Annual Tax Payment (Form 3522)” and click “Continue.”
On the next screen, enter your tax period:
- Calendar tax year: Enter January 1 as the Period Beginning Date and December 31 as the Period Ending Date
- Fiscal tax year: Enter the first and last dates of your taxable year
Next, enter “$800.00” in the Payment Amount field.
Then choose the date you want the payment to be processed in the “Payment Date” section. Most business owners simply choose the current date.
Click “Continue” after you fill out all the fields.
4. Proceed To Payment
All you need to do at this point is to enter your banking information and submit the payment.
When the payment clears, your $800 Annual Franchise Tax payment is complete. You will be taken to a confirmation page, and in most cases you’ll also receive a confirmation email shortly after.
I strongly suggest that you save a copy of the confirmation right away and keep it with your business records. It’s a lot easier to save it now than to go looking for it later in case you ever need proof of payment.
Important: Do NOT submit Form 3522 by mail if you pay the $800 Annual Tax using Web Pay.
How To Pay Your $800 Annual Franchise Tax With Credit Card
1. Getting Started
Go to the ACI Payments website and select “California” from the State or Territory dropdown menu.
Next, choose “California Franchise Tax Board: Business Entity Taxes” in the Payment Entity field.
Under Payment Type, select “Limited Liability Company.”
Once everything is filled out, click “Make a Payment” to continue.
2. Make Your Payment
Enter “$800” in the Payment Amount box and choose your preferred payment options.
Click “Continue” to proceed.
3. Review Your Total Payment
The system will show the total amount charged to your card. Credit card payments include a 2.3% convenience fee, which brings the total to $818.40 for the standard $800 LLC tax payment.
Take a moment to review the amount carefully. Click “Accept” to continue once everything looks correct.
4. Create An ACI Account Or Continue As A Guest
You can either create an ACI Payments account or continue as a guest. Either option is fine.
But if you plan to pay your $800 Annual Franchise Tax using this platform again, you should create an account now.
For presentation purposes, I’ll continue as a guest.
5. Enter Your LLC’s Information
You’ll need to choose “LLC – Payments” from the dropdown menu and click “Continue.”
This will lead to a page where you need to provide your LLC’s information along with your name and address. These work very similarly to the ones I discussed when giving an overview of your paper filing process, meaning you can use that as a reference if you get stuck.
For the “LLC Payment Type”, make sure you choose “Annual Tax Payment” from the dropdown.
Once everything is filled out, enter your card information and click “Continue” to finalize the payment.
6. Review And Proceed To Payment
Take one last look over your information to make sure everything is correct, then click “Continue” to finalize the payment.
Important: Don’t bother submitting Form 3522 if you’ve paid your $800 Annual Tax via ACI Payments.
Congratulations! Your $800 Annual Franchise Tax payment by card is all done. The system should provide you with an electronic confirmation receipt, something which you should keep with your official business records for safekeeping.
Payment Processing & Approval Methods
1. Electronic Payments (Web Pay, Credit Card, Electronic Funds Withdrawal)
This is the best way forward if you need a quick turnaround time. You’ll get instant confirmation on your payment screen, or be sent a confirmation email from the FTB.
Your confirmation should include your payment amount, scheduled/processing date, and a confirmation number or transaction ID.
Tip: Save and print your confirmation as soon as you get it instead of waiting around and potentially losing it. This is your official payment proof that serves exactly the same purpose as receiving Form FTB 3522 by mail.
2. Check Payments (Form 3522 Voucher)
The Franchise Tax Board doesn’t send a receipt when you pay your Annual Franchise Tax by check or money order.
To verify that your payment has been processed, wait a few business days and then check whether the payment appears on your FTB account.
a. How To Verify Your Payment On MyFTB
Go to ftb.ca.gov and click “MyFTB Login.”
Sign in to your account. If you don’t have an account, create one now.
Once you reach the main dashboard, navigate to Accounts, then View Payments, and finally Business Account.
You should now see your LLC payment history. If there is an entry labeled “LLC Tax (Form 3522),” that means your payment has been successfully processed.
b. Timeframe For Payment Processing
Processing times vary depending on your chosen payment method.
- Credit card payments through ACI Payments can take up to 1 month to process.
- Online Web Pay payments made through a bank account can also take up to 1 month to process.
- Mailed payments submitted with a check and Form 3522 may take up to 1 month to process as well.
These processing timeframes can change, so it’s worth checking the Franchise Tax Board Time Frames page occasionally for the most up-to-date estimates.
Keep in mind that some payments may take longer to process because of banking delays, additional verification, holidays, or simply higher filing volume during busy tax periods.
Tip: One thing I always recommend is submitting your payment a few days before the due date, especially if you’re mailing a check.
Waiting until the last minute leaves very little room for mail delays or processing slowdowns, and that’s usually how people end up with avoidable late fees and penalties.
Who Needs To Pay The $800 Annual Tax?
Most California LLCs are required to pay the $800 Annual Franchise Tax. This applies to:
- Any LLC doing business in California.
- Any LLC that has had its Articles of Organization approved by the California SOS.
- Any LLC that has had a Certificate of Registration issued by the California SOS.
But a few LLCs don’t have to pay the $800 Annual Franchise Tax.
Nonprofit and tax-exempt LLCs are exempt for tax years starting on or after January 1, 2023. These entities are defined under Internal Revenue Code §501(c)(2) and 501(c)(25), along with California Revenue & Taxation Code §23701h and 23701x.
Small businesses solely owned by a deployed U.S. Armed Forces member may also qualify for an exemption under California Revenue & Taxation Code §17941(f). This applies from January 1, 2020 through January 1, 2030, but only if:
- the owner is deployed during the taxable year, and
- the LLC operates at a loss or stops operating during that period.
California Form 3522 Due Date
Follow these guidelines when paying your Annual Franchise Tax. This ensures you remain in good standing with the California Franchise Tax Board:
- Your first Annual Franchise Tax payment is due on the 15th day of the 4th month after your LLC was officially formed with the California Secretary of State.
- Then the recurring due date will be on the 15th day of the 4th month of your LLC’s taxable year (calendar or fiscal).
- The deadline to file and pay is extended to the next business day if the due date falls on a weekend or a state holiday.
Important: Your filing timeline starts from the month your LLC was approved, not the specific approval date.
If your LLC follows the calendar tax year (January 1 to December 31), your $800 Annual Tax payment is due on April 15.
If your LLC follows the fiscal year, your first Annual Tax Payment is due on the 15th day of the 4th month AFTER the start of your fiscal year.
Example: Your LLC was approved on June 10, 2026.
- June counts as month one.
- August counts as month four (Three months after June).
- Your initial $800 payment is due on August 15, 2026.
Future payments will be based on your LLC’s tax year:
- April 15 if on a calendar year.
- The 15th day of the 4th month for fiscal year LLCs.
Calendar Year Vs. Fiscal Year
How You Can Avoid Paying $1,600 Franchise Tax
If your California LLC was formed between October and December of the same year, you may be required to make two $800 Franchise Tax payments within three months.
Your first payment covers the year your LLC was initially formed, while your second payment is due for the next calendar year (Beginning January 1).
Here’s how to avoid it:
Tip: Choose a future filing date so that your LLC officially starts in January the following year. This ensures that you don’t need to pay both fees so close together.
This simple adjustment to your LLC’s formation date ensures you don’t need to pay back-to-back Annual Franchise Tax Fees.
Read my full guide for step-by-step instructions: How To Avoid Back-To-Back California Annual Franchise Tax.
What Happens If I Miss The Form 3522 Deadline?
Besides your LLC losing its good standing with the state, the Franchise Tax Board (FTB) may impose interest, late fees, or potentially suspend or forfeit your business rights if your form submission or payment is delayed.
I’ve linked two official resources below so you can learn about the potential penalties and fees:
- Franchise Tax Board: Penalty Reference Chart.
- Franchise Tax Board: Common Penalties & Fees.
1. Monetary Penalty And Interest
Your payment becomes delinquent and starts to accrue penalties and daily interest if you miss the Form 3522 due date. You should file and pay immediately once you realise the payment is late to minimize your potential added costs.
- For LLCs operating on a calendar-year basis, Form 568 is your final reconciliation for the tax year.
- Your deadline is April 15, 2026 (This is your final deadline to pay your $800 Annual Tax).
- If you haven’t paid your Annual Tax when filing Form 568, you must include the unpaid tax, penalties, and interest in your final submission.
For example, your ABC Design LLC was due to pay its $800 Annual Tax by June 15, 2026. However, the payment was not made until April 15, 2027 (9 months late)
California imposes an initial base penalty for late payment of 5% of unpaid tax. That’s the equivalent of $40 on an $800 balance.
And the state adds another 0.5% penalty for each month the payment remains unpaid. Since the payment was 9 months late, the extra penalty is 4.5% of $800, so $36 extra.
So ultimately you would owe $876, which is the $800 Annual LLC Tax, the first late payment penalty, and the monthly penalties. But that is not the end of the story yet.
Interest is charged separately and continues to accrue daily until the balance is paid in full. So the actual total may be slightly higher depending on when payment is made.
Tip: I’ve written an article on the California LLC Return Of Income (Form 568), which provides further details on the filing process. Check it out!
2. Other Penalties
The table below breaks down the potential penalties your LLC could face for failing to file or pay the California Annual Franchise Tax on time.
| Penalty name | Form/Obligation | R&TC section | IRC section | Computation/Description |
|---|---|---|---|---|
| Late payment penalty | Form 3522 (Annual LLC Tax – $800) | R&TC § 19132 | IRC § 6651(a)(2) | California charges 5% of the unpaid tax, plus an additional 0.5% per month or partial month until the balance is paid. The penalty can continue growing until it reaches a maximum of 25%. |
| Interest on unpaid tax and penalties | Form 3522 and all LLC tax balances | R&TC § 19101 | IRC § 6601 | Interest starts accruing daily from the original due date and continues until the balance is fully paid. The interest rate is adjusted quarterly. |
| Dishonored payment (Bad check) penalty | Form 3522 payment (Check, e-check, etc.) | R&TC §19314 | For payments up to $1,250, the penalty is $25. For larger payments, the penalty becomes 2% of the payment amount. This is charged on top of any existing penalties and interest. | |
| Demand penalty | Form 3522 or Form 568 (If FTB issues Demand Notice) | R&TC § 19133 | If your LLC ignores a Demand for Tax Return notice from the Franchise Tax Board, California can charge a penalty equal to 25% of the total tax due, even if partial payments or credits were already made. | |
| Entity suspension/forfeiture | Failure to pay annual tax (Form 3522) | R&TC § 23301 | If the annual LLC tax remains unpaid, California may suspend or forfeit your LLC. Once suspended, your business can lose the right to legally operate, enter contracts, or defend itself in court. |
California Franchise Tax Board Contact Information
You should contact the FTB if you have further questions regarding your Form 3522 filing.
Phone: 800-852-5711.
Business hours: 7:00 A.M. – 5:00 P.M. PT (Monday – Friday).
- The FTB allows you to hold your place in the line and will call you back when ready.
- The hold times can be checked at: CA FTB: Time Frames.
- You can use the live chat option: CA FTB: Live Chat.
Frequently Asked Questions
Every LLC formed in and operating in California is required to pay the $800 Annual Tax using Form 3522. This mandatory filing applies whether the LLC is active or inactive in the state. You will need to formally cancel your LLC to stop the tax from being due.
Your first Annual Tax LLC payment is due on the 15th day of the 4th month from when you filed your LLC formation documents with the California Secretary of State.
Your Annual Franchise Tax costs $800. This must be paid annually, whether your business is active or inactive.
You can pay your California Annual Franchise Tax in two different ways:
– Online: Using Web Pay, ACI Payments (Credit Card), or Electronic Funds Withdrawal (EFW).
– By mail: By sending Form 3522 (LLC Tax Voucher) to the FTB.
No, it’s not. You’ll need to pay in the first year, as the first-year waiver no longer applies to LLCs formed on or after January 1, 2024. Previously, newly formed LLCs were exempt from paying the annual tax fee in their first year.
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ABOUT THE AUTHOR
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Bizreport adheres to strict editorial integrity standards avoids using tertiary references. We have strict sourcing guidelines and rely on peer-reviewed studies, academic research. To ensure the accuracy of articles in Bizreport, you can read more about the editorial process here.
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