My comments are as follows:
- California conforms to the federal entity classification regulations commonly known as "check-the-box regulations" that allow an LLC to elect to be taxed as a corporation. This means that if you filed the appropriate forms with the IRS to be taxed as an S corporation, then you are an S corporation for California as well.
- Based on #1 above, you selected the incorrect entity type. You should have selected S corporation. However, you paid in the correct amount of tax as $800 is the minimum.
- This may or may not cause confusion at the California FTB (see note 6) when you actually file for California form 100S next year. If it does, then it just means you will get a notice and you will need to respond with what happened in a response letter. KEY is to not ignore any letters thinking you don't owe because you already paid in the $800.
- California tax structure is a combination of net income OR franchise tax. As noted above, the $800 is the minimum franchise fee that needs to be paid in annually regardless of income or activity; must be paid as long as you are registered in California or are doing business in California. See the attached link for some guidelines for S corporations https://www.ftb.ca.gov/businesses/Structures/S-Corporations.shtml
- Also attached is a link to the form 100S. You will note that line 21 indicates to pay the 1.5% tax but no less than the minimum $800 fee. So if you don't expect to be liable for more than this, you should be good to go for 2018. https://www.ftb.ca.gov/forms/2017/17_100s.pdf
- Since the form 3522 is an LLC voucher you may want to call the California FTB and explain what happened and see if this can be corrected within their records now and avoid any letter correspondence later.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
