The California LLC annual tax is generally $800, but it is not the same as California's income-based LLC fee. Your deadlines and required forms depend on when your taxable year begins, your California income, and whether the LLC is active, foreign, or closing.
Key Takeaways
- Most LLCs organized, registered, or doing business in California must pay an $800 annual tax.
- An additional LLC fee applies when California-source total income reaches $250,000.
- Established calendar-year LLCs generally pay the annual tax by April 15.
- FTB 3522 is the annual tax voucher, FTB 3536 covers the estimated LLC fee, and FTB 568 is the LLC return.
- You can pay through official online services, by card through an approved processor, or by mail.
- Stopping business activity does not automatically cancel an LLC or end future obligations.
California LLC Annual Tax vs. the Income-Based LLC Fee
California has two charges that LLC owners commonly confuse. The first is the $800 annual tax. It generally applies because the LLC is organized in California, registered with the California Secretary of State, or doing business in the state. It does not depend on profit, revenue, or distributions to members.
The second charge is the annual LLC fee California imposes on an LLC with at least $250,000 in total income derived from or attributable to California. The fee rises at statutory income levels. An LLC can owe both charges for the same taxable year. For example, an LLC with enough California-source total income may owe the $800 tax plus the applicable income-based fee.
| Charge | What Triggers It | Current Amount |
|---|---|---|
| Annual LLC tax | Being organized, registered, or doing business in California, subject to applicable exceptions | $800 |
| Income-based LLC fee | At least $250,000 of total income derived from or attributable to California | $900 to $11,790, depending on the income level |
The $800 amount is sometimes called the California $800 LLC fee, minimum franchise tax, or CA LLC annual tax. The Franchise Tax Board treats it as the LLC annual tax, while the separate graduated charge is the LLC fee. Keeping the terms separate helps you select the right payment type and form. For a broader comparison, review LLC costs and filing fees by state.
Who Must Pay the Annual Tax for an LLC in California?
A domestic LLC generally becomes subject to the annual tax after it files its organizing document with the California Secretary of State. A foreign LLC may become subject to California requirements when it registers or begins doing business in California. A foreign LLC is one formed under another state's or country's laws.
Tax classification does not always remove the obligation. A single-member LLC disregarded for federal income tax purposes can still have California LLC filing and payment requirements. A multi-member LLC taxed as a partnership can also owe the annual tax and, when its California income reaches the threshold, the additional LLC fee. An LLC that elects corporate tax treatment follows rules associated with that classification, so confirm which California return and tax regime apply.
Having no profit does not by itself eliminate the $800 tax. An LLC can owe it even if it had no sales, operated at a loss, or remained inactive without completing the cancellation process. The temporary first-year exemption for qualifying LLCs applied to taxable years beginning from 2021 through 2023. It has expired, so a newly formed or registered LLC should not assume that its first taxable year is free.
California nexus can be fact-specific. Activities conducted by employees, members, agents, or contractors may affect whether an out-of-state LLC is doing business in California. If you operate in several states, compare California's requirements with the rules governing Delaware LLC annual fees or another formation state, because paying one state does not necessarily satisfy another state's obligations.
When the California $800 LLC Tax Is Due
An established calendar-year LLC generally pays the $800 annual tax by the 15th day of the fourth month of its taxable year, usually April 15. A fiscal-year LLC applies the same rule from the beginning of its fiscal year. If the due date falls on a weekend or legal holiday, the deadline generally moves to the next business day.
For a newly organized California LLC, the first payment is generally due by the 15th day of the fourth month after the taxable year begins. The taxable year normally begins when the LLC is organized. For a newly registered foreign LLC, the relevant starting date may depend on when it registers or begins doing business in California. Because those dates can differ, identify the event that first created the California obligation before calculating the deadline.
A short first taxable year does not automatically eliminate the annual tax. It can also create two payment dates close together. An LLC formed late in one calendar year may have its first-year payment followed soon afterward by the next calendar year's annual tax. Check the Franchise Tax Board's current LLC filing and payment guidance for the taxable year involved.
The additional LLC fee follows a different schedule. Its estimated payment is generally due by the 15th day of the sixth month of the current taxable year. The LLC then reports and reconciles the fee on its return. An extension of time to file a return does not generally extend the time to pay tax or fees. Missing the original payment date can therefore produce penalties and interest even when the return itself is timely under an extension.
FTB 3522, FTB 3536, and FTB 568 Compared
The correct form depends on what you are paying or reporting. FTB 3522 is associated with the $800 annual LLC tax. FTB 3536 is used for an estimated payment of the income-based LLC fee. FTB 568 is the LLC's return of income, not merely a payment voucher.
| Form | Purpose | Who Uses It | Document Type |
|---|---|---|---|
| FTB 3522 | Accompanies payment of the $800 annual LLC tax when paying by mail | LLCs subject to the annual tax | Payment voucher |
| FTB 3536 | Accompanies the estimated income-based LLC fee payment | LLCs expecting to owe the additional fee | Estimated fee payment voucher |
| FTB 568 | Reports LLC income, tax information, and the final LLC fee calculation | LLCs required to file a California LLC return | Tax return |
You ordinarily do not mail FTB 3522 when you make the annual tax payment electronically. If you pay by mail, use the voucher and mailing instructions for the correct taxable year. Those instructions identify the current address and required payment notation. See this detailed explanation of Form FTB 3522 before preparing a mailed CA LLC tax payment.
Do not use FTB 3522 as a substitute for FTB 568. Paying the tax and filing the return are separate compliance steps. Likewise, sending the estimated fee with FTB 3536 does not replace the return on which the final fee is calculated.
How to Pay the LLC Fee and Annual Tax in California
California provides electronic and mailed payment methods. Start by confirming whether you are paying the $800 annual tax, the estimated income-based LLC fee, a return balance, or a notice. Selecting the wrong payment type or taxable year can delay proper crediting.
- Bank account payment: Use the Franchise Tax Board's Web Pay service for a payment from an eligible checking or savings account. Enter the LLC's identifying information carefully and save the confirmation.
- Card payment: Use an authorized card processor identified by the Franchise Tax Board. The processor may charge a service fee, so review the displayed cost before submitting the payment.
- Mailed payment: Follow the instructions on the current voucher. Include the correct form, make the check or money order payable as directed, and add the LLC's legal name, California Secretary of State file number, federal employer identification number when applicable, and taxable year.
Use the Franchise Tax Board's official payment page to choose the current payment channel. Do not send both an electronic payment and a mailed check for the same liability unless the FTB instructs you to do so. Keep the electronic confirmation, canceled check, voucher copy, and any account transcript or notice showing how the payment was applied.
If your LLC has uncertain California nexus, missed payments, disputed penalties, or unresolved closing requirements, you can post your legal need on UpCounsel's marketplace. An attorney can determine which years and forms apply, coordinate corrective filings, and communicate with the Franchise Tax Board or Secretary of State. Responses typically arrive within a day, which can help when a notice or approaching deadline requires prompt action.
How to Calculate the Additional Annual LLC Fee
The additional fee is based on total income from all sources derived from or attributable to California, not simply the LLC's net profit. Expenses that reduce taxable profit do not necessarily reduce the measure used for this fee. Multi-state LLCs may need to apply California's sourcing rules before selecting the correct fee level.
| California Total Income | LLC Fee |
|---|---|
| $250,000 to $499,999 | $900 |
| $500,000 to $999,999 | $2,500 |
| $1,000,000 to $4,999,999 | $6,000 |
| $5,000,000 or more | $11,790 |
An LLC below $250,000 in California total income generally does not owe this additional fee, although it may still owe the $800 annual tax. An LLC at or above the threshold may owe both. Estimate the fee using expected current-year income, pay it using the applicable FTB 3536 process, and report the final calculation on FTB 568.
Do not calculate the fee from gross receipts without considering the statutory definition and sourcing rules. The relevant measure is commonly described as total income, and the calculation may differ from financial-statement revenue or federal taxable income. This distinction matters for LLCs selling across state lines, earning pass-through income, or receiving non-sales income. A tax professional can help classify and source receipts when the answer is unclear.
Statement of Information vs. California's LLC Tax Filing
California does not require an LLC to file an annual report under that exact name. Instead, an LLC generally files a Statement of Information with the California Secretary of State within 90 days after registration and every two years after that. The filing updates information such as the LLC's addresses, management, and agent for service of process.
The Statement of Information is separate from the $800 annual tax, the income-based fee, and FTB 568. Filing the statement does not pay an FTB balance. Paying the Franchise Tax Board does not satisfy the Secretary of State filing requirement. Each agency maintains separate records, deadlines, and consequences for noncompliance.
Use the Secretary of State's official Statement of Information guidance to check the filing schedule and current process. An LLC generally files its biennial statement during the applicable filing period tied to its registration month. It may also submit an updated statement when reported information changes.
Maintain a compliance calendar that separates tax payments, tax returns, and Secretary of State filings. If your company operates in other jurisdictions, those states may use the term annual report and require yearly filing. The filing cycle and tax structure vary substantially, as shown by this overview of annual LLC fees and filing requirements.
Inactive, Closing, Suspended, or Late LLCs
An LLC does not stop accruing obligations merely because it closes its office, loses customers, or stops earning income. Until the business completes the required cancellation process and satisfies applicable tax requirements, California may continue treating it as an existing entity. Owners should address both Secretary of State records and Franchise Tax Board accounts.
A closing LLC may need to file a final FTB 568, mark it as final, pay outstanding amounts, and submit the appropriate cancellation document to the Secretary of State. The exact cancellation form and eligibility requirements depend on the LLC's history and circumstances. Check current state instructions rather than assuming that administrative inactivity ends the entity.
If a payment is late, pay the undisputed balance as soon as possible to limit additional interest and penalties. Then confirm that the payment was credited to the correct LLC, taxable year, and liability type. If it is missing or misapplied, gather the confirmation number, canceled check, bank record, voucher, and relevant notices before contacting the FTB. Do not make a duplicate payment solely because the first payment is not immediately visible.
Continued failures can lead to suspension or forfeiture, which restricts the LLC's ability to exercise its rights and powers in California. Correcting that status may require delinquent returns, payments, Secretary of State filings, and a revivor process. A filing extension does not erase late-payment charges. If you receive a penalty notice, review the stated period and payment history, then follow the notice instructions for payment, correction, or a request for relief.
Frequently Asked Questions
How Do I Pay the LLC Fee in California?
You can pay the California LLC fee through an FTB electronic payment service, an authorized card processor, or by mail with the applicable voucher. Choose the income-based LLC fee payment type rather than the $800 annual tax category. Verify the taxable year and entity number before submitting the payment, then retain proof that the transaction was accepted.
How Do I Pay My LLC Fee If I Did Not Receive a Notice?
You should pay by the applicable deadline even if the FTB did not send a notice. California payment duties arise from the LLC's status and income, not from receiving a bill. Use your formation or registration date, taxable year, and expected California total income to identify the obligation, or obtain professional advice if those facts are uncertain.
Does California Require an Annual Report for an LLC?
No, California LLCs generally file a biennial Statement of Information rather than a document titled an annual report. A newly registered LLC also has an initial filing requirement. This Secretary of State filing is independent of the LLC's annual tax payment and tax return, so completing one does not satisfy the others.
Does an LLC Owe the $800 Tax If It Made No Money?
Yes, an LLC can owe the $800 tax even if it had no revenue or profit. The obligation is generally based on the entity being organized, registered, or doing business in California. A properly canceled entity or an LLC covered by a specific exception may receive different treatment, but inactivity alone does not establish an exception.
What Should I Do If My Payment Was Applied to the Wrong LLC?
Contact the Franchise Tax Board and request that it research or transfer the payment. Have the payment date, amount, confirmation or check information, taxable year, and identifying numbers for both entities available. Continue responding to any notices by their stated dates, and keep written records of the correction request until each account reflects the proper allocation.
