maifreedoms

Finally a post I have the answer to! The reason that you received the notice is because California LLCs have a very early payment due date. Payment for the tax AND the fee is due during the tax year itself, not when the return is due. It sounds like the payments made were applied towards 2021 (unless noted otherwise) and will be claimed on the 2021 tax return (due 3/15/22 or 4/15/22 depending on the classification). Tom has the right idea in general but I think he got mixed up with the annual fee and tax. The fee (paid by 3536) is based on gross revenues while the tax (paid by 3522) is $800 regardless. I like the analogy of thinking of the 3536 in the context of 1040ES. It's obviously hard to figure out what your gross revenues will be when you're only a couple months into the year so it's typically better to overestimate. That said, penalties will not be imposed if the estimated fee paid by the due date is equal to or greater than the total amount of the fee of the LLC for the preceding taxable year A couple things to note about the LLC tax and fee: the tax is NOT deductible on the state-side but the fee is deductible. Of course both are deductible federally but it's an easy mix up state-side that will result in a notice if not properly taken into account. Also, the due dates on the various forms depend on how the LLC is classified (partnership, SMLLC, etc) and who owns it (entity/individual vs pass-through). Be careful if the LLC is classified as an S-Corp as you'll need to file different forms/amounts. You can reach out to the FTB to reclassify payments made so that they're applied to the correct year if the forms e-filed to them were for the incorrect year. Keep in mind that there's only a few more days to make payment for the 2021 LLC fee. Happy filing!