Owners usually ask the same things. Do we owe the $800 annual tax with low or no income? Which forms do we file? How do first-year rules work? When is everything due?
This guide identifies the taxes and fees, matches your LLC to the right forms, and builds a filing calendar. Confirm every figure against current California Franchise Tax Board (FTB) guidance before you file.
Key Takeaways
- The $800 annual tax and the income-based LLC fee are separate obligations with separate triggers.
- Federal disregarded status does not remove California filing duties.
- The first-year exemption covered only 2021 to 2023 formations.
- Extensions to file never extend the time to pay.
- Secretary of State, payroll, and sales-tax filings run on their own calendars.
California LLC Taxes and Fees: What Your Business May Owe
The $800 annual California LLC tax
For an LLC taxed as a disregarded entity or partnership, the annual tax applies if it is organized or registered with the California Secretary of State (SOS) or doing business in California. FTB Publication 3556 confirms registration alone can trigger it, even without business activity.
The tax is fixed. A loss year, a no-income year, or inactivity does not remove it. Only narrow exceptions apply:
- Qualifying tax-exempt LLCs under IRC section 501(c)(2) or 501(c)(25)
- Small LLCs solely owned by a deployed U.S. Armed Forces member that operate at a loss or cease operating
- LLCs with no California business and a taxable year of 15 days or less
The income-based LLC fee
The fee is separate from the annual tax. It applies when California-attributable total income reaches $250,000. For 2026, the tiers are:
| California total income | Fee |
|---|---|
| Below $250,000 | $0 |
| $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 |
The measure is gross income plus cost of goods sold, not net profit, cash collected, or member distributions. An LLC with $600,000 of California total income owes the $2,500 fee even if it barely broke even. FTB's general page says "more than $250,000," but the statute and fee table start at $250,000 or more.
First-year, inactive, and foreign LLC considerations
The temporary first-year exemption covered LLCs organized or registered from January 1, 2021 through December 31, 2023. It does not apply to 2026 formations. A separate $400 first-year tax for certain LLCs applies to taxable years beginning in 2027 to 2029.
A California-organized LLC that files a short-form cancellation (LLC-4/8) within 12 months of formation may avoid the first-year $800 if it meets the form's conditions.
Out-of-state LLCs can owe too. Registration in California, or "doing business" there, triggers the tax. Doing business includes meeting the California sales, property, or payroll tests.
The latest published thresholds are for 2025:
- $757,070 in sales
- $75,707 each for property and payroll
The tests also apply above 25% of total amounts.
Before assuming inactivity or out-of-state formation removes the duty, verify the effective date, registration status, tax year, and FTB account.
How Tax Classification and Ownership Affect California LLC Filing Requirements
Federal tax classification versus California filing treatment
Federally, an eligible one-owner LLC is disregarded, and a multi-owner LLC is a partnership. An LLC can elect corporate treatment on Form 8832, or S corporation status on Form 2553. California generally follows the federal classification.
The LLC remains an LLC legally after an election. The election changes the returns, payment calculations, and deadlines.
Single-member LLCs
A disregarded single-member LLC (SMLLC) still files Form 568 in California and pays the $800 annual tax plus any fee. The owner reports the income on their own return.
Form 568 includes an owner consent. If a nonresident owner does not consent, Schedule T applies and the LLC may owe tax for that owner. Corporate owners may face additional California obligations. Foreign SMLLCs with no California activity should confirm current FTB filing rules.
Multi-member LLCs taxed as partnerships
These LLCs file Form 568 and issue Schedule K-1 (568). For nonresident members, file Form 3832. The LLC pays tax at the highest marginal rate for each nonresident member who does not consent.
Keep records that support allocations:
- Ownership percentages and capital accounts
- Income and deductions by member
- California-source activity
Nonresident withholding is generally 7% on California-source payments above $1,500 a year. Related forms include 592-A and 592-F for foreign members. Eligible partnerships can also elect the PTE tax of 9.3% of qualified net income (2026 to 2030).
LLCs taxed as corporations
An LLC taxed as a C corporation files federal Form 1120 and California Form 100. An S corporation files Form 1120-S and Form 100S. Neither files Form 568. The $800 corporate minimum franchise tax still applies, with a first-taxable-year exemption for qualifying new corporations.
Foreign owners and multistate businesses
Foreign-owned U.S. disregarded LLCs may file Form 5472 with a pro forma Form 1120 for reportable transactions. The IRS penalty is $25,000 per failure. Where ownership, inventory, employees, or customers span states or countries, formation state alone does not decide the outcome. Get professional review.
California LLC Tax Forms and Other Required Filings
Form 568, Form 3522, and Form 3536
- Form 568 is the annual return. It is not a payment voucher.
- Form 3522 pays the annual tax, especially by mail. Paying does not satisfy the return requirement.
- Form 3536 pays the estimated fee only when the LLC expects to owe it, not merely because annual tax applies. No estimate is due if the tax year ends before the estimate date.
Federal forms
| Classification | Federal form |
|---|---|
| Disregarded, individual owner | Schedule C (or the owner's applicable schedule) |
| Partnership | Form 1065 |
| C corporation | Form 1120 |
| S corporation | Form 1120-S |
Federal and California forms are linked but not interchangeable.
Secretary of State, payroll, and sales-tax filings
- SOS Statement of Information (LLC-12) is due within 90 days of registration, then every two years ($20). Missing it can bring a $250 penalty and suspension.
- Employers register with the EDD within 15 days of paying more than $100 in quarterly wages. DE 9 and DE 9C are filed quarterly, even for zero-wage quarters.
- Sellers of taxable tangible goods need a CDTFA seller's permit. There is no permit fee.
California LLC Tax Deadlines, Payment Methods, and Consequences
2026 calendar-year timeline
- March 16, 2026: Form 568 for partnership-classified LLCs and Form 100S (tax year 2025)
- April 15, 2026: Annual tax payment; SMLLC Form 568 with an individual owner; Form 100
- June 15, 2026: Estimated LLC fee
Fiscal-year LLCs pay the annual tax in month four and the estimated fee in month six. Partnership-classified Form 568 is due in month three. Weekend dates move to the next business day. Verify all dates against current FTB instructions.
Paying the FTB
Payment options include:
- FTB Web Pay for free bank-account payments
- MyFTB online account payments
- Mail to Franchise Tax Board, PO Box 942857, Sacramento, CA 94257-0531
If you pay online, do not mail the voucher. Select the right entity, tax year, and payment type, and keep your confirmation.
Extensions and penalties
FTB automatically extends filing time for eligible LLCs, but not payment time. FTB's Form 1138 guidance outlines the penalties:
- Late payment: 5% of unpaid tax plus 0.5% per month, up to 40 months
- Late estimated fee: 10% underpayment penalty
- Late filing: $18 per member per month, up to 12 months
- Interest on unpaid amounts
Unfiled returns, unpaid balances, or a missing LLC-12 can lead to suspension or forfeiture.
To revive the LLC, file delinquent returns, pay outstanding balances, and submit Form 3557 LLC so the Secretary of State can restore good standing. A separate $2,000 penalty can apply if a suspended LLC ignores an FTB demand for a return.
California LLC Tax Filing Checklist and When to Seek Professional Help
- Confirm the LLC's effective date, registration status, and tax year.
- Identify federal and California classification.
- Calculate the $800 tax and any LLC fee.
- Gather bookkeeping and ownership records.
- File the federal and California returns.
- Complete the SOS Statement of Information.
- Save every confirmation.
Seek professional review for:
- Foreign or nonresident owners
- Multistate operations
- Corporate tax elections
- California inventory or employees
- Uncertain "doing business" status
- Missed returns, notices, suspension, or dissolution
- Several years of unpaid obligations
VJM Global provides accounting outsourcing, bookkeeping, tax compliance support, and financial reporting for foreign founders and multinational businesses. That support can help organize records and manage recurring compliance. It does not replace California-specific licensed advice.
Frequently Asked Questions
Do all LLCs have to pay the $800 annual tax in California?
Generally yes, if the LLC is organized, registered, or doing business in California, regardless of income. Narrow exceptions exist, so check entity type, classification, and short-year status.
Is the CA LLC fee waived the first year?
The waiver covered LLCs formed or registered from 2021 through 2023 only. For 2026, confirm the current rule with the FTB.
How do I pay the $800 LLC fee in California?
The $800 is an annual tax, separate from the income-based fee. Pay through FTB Web Pay or MyFTB, or mail Form 3522 with payment.
What are the LLC fees in California in 2026?
The annual tax is $800. The fee is $0 below $250,000, then $900, $2,500, $6,000, or $11,790 as California total income rises.
When do I have to file taxes in California for my LLC and which forms do I file?
It depends on classification, tax year, and owner. Common forms are 568, 100, and 100S. Calendar-year partnership LLCs file by March 16, 2026, and payment deadlines differ from filing deadlines.
What are the filing requirements for a California single-member LLC?
It pays the $800 annual tax and generally files Form 568, while the owner reports income federally. File the SOS Statement of Information separately, and check special rules for foreign owners.
