CALIFORNIA EXEMPTION LLC AB85

I spoke to a FTB representative in California today and she told me that with AB85 LLCs are not required to pay the 800$ tax for the first year regardless of the 15day rule or income rule that was in place before. This is for businesses incorporated 01/01/2021 +.

I have turbo tax business software and I'm trying to file, but the software is making me fill out the 3522 form.

How do I make it so the software doesnt require me to do this?

268

Level 13

Feb 23, 2022 1:38:33 PM

The California franchise tax is required to be paid in advance.

The form 3522 is the voucher for your 2022 franchise tax liability, not the tax for 2021.

While Calif AB85 waived the first year (2021 for you) it did not waive any franchise tax beyond the initial year.

The voucher is for your 2nd year tax liability.

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CALIFORNIA EXEMPTION LLC AB85