Hello! Dear California Biz Tax Experts:
I have a question about California SMLLC elected to be taxed as S corp. I have a California SMLLC in 2024, which was high gross revenue but very low profit. So in 2025, I submitted form 2553 and got approved to be taxed as S corp election in 2025 (effective 2025/1/1) . In early 2025, I paid CA FTB for 2025 Estimated LLC fee/LLC Tax ($800 LLC annual tax by form 3522 and $2500 estimated LLC fee by form 3536), and also $900 in 100-ES for S corp because I was not sure if the business will be LLC or taxed as S corp for 2025. Later I received IRS approval that the business is elected to be taxed as S corp (effective from 2025/1/1). So right now, CA FTB have got both my payments for LLC and S corp. My questions for 2025 year tax are:
1. Is the $800 annual LLC fee (3522 form) not applicable for CA LLC taxed as S corp? Is the payment covered by 100-ES which includes a equivalent $800 Franchise tax?
2. May I request the LLC fee/tax payments for SMLLC be re-applied to the S corp? Should I call CA FTB to re-categorize the payment correctly? Or will CA FTB take care of it in tax return season?
Thanks very much!
