California Form 565 is the partnership return; Form 568 is the LLC return. The split between CA Form 565 vs 568 follows legal structure, not federal tax classification. General partnerships, limited partnerships, and limited liability partnerships file Form 565. Every limited liability company registered with the Secretary of State or doing business in California files Form 568, even if the IRS treats it as a partnership, a disregarded entity, or a corporation. Pick the form that matches how the entity was organized, not how it is taxed federally.
Who Files Form 565
Form 565, the Partnership Return of Income, is the annual informational return for entities legally organized as partnerships: general partnerships, limited partnerships, and limited liability partnerships doing business in California or receiving California-source income.1Franchise Tax Board. 2025 Instructions for Form 565 Partnership Tax Booklet The partnership itself pays no income tax. It calculates income, deductions, gains, and losses at the entity level, then allocates each partner’s share on Schedule K-1 (565) for partners to report on their own California returns.
Limited partnerships and limited liability partnerships on file with the California Secretary of State must file Form 565 even if they are not doing business in the state and have no California-source income.1Franchise Tax Board. 2025 Instructions for Form 565 Partnership Tax Booklet General partnerships without California activity or income are not required to file.
One scenario catches filers off guard. A foreign LLC that is not registered with the Secretary of State, is not doing business in California, but earns California-source income files Form 565 instead of Form 568.1Franchise Tax Board. 2025 Instructions for Form 565 Partnership Tax Booklet Form 568’s annual tax and fee obligations attach to LLCs registered or operating in California, so a non-registered foreign LLC with only passive California income reports through the partnership form.
Who Files Form 568
Form 568, the Limited Liability Company Return of Income, must be filed by every LLC registered with the Secretary of State or doing business in California, regardless of federal tax classification.2Franchise Tax Board. Limited Liability Company A multi-member LLC taxed as a partnership, a single-member LLC treated as a disregarded entity, and an LLC that elected corporate treatment all file Form 568. What changes is how much of the form each one completes.
A multi-member LLC taxed as a partnership files the full return and allocates income to members on Schedule K-1 (568). A single-member LLC treated as a disregarded entity still files Form 568 to pay the annual tax and fee, but operating income gets reported on the owner’s individual return.3Franchise Tax Board. Single Member LLC An LLC that elected corporate treatment files a partial Form 568 to pay the annual tax and LLC fee, plus a corporate return (Form 100 or 100S) for income reporting.4Franchise Tax Board. 2025 Instructions for Form 100-ES Corporation Estimated Tax
If the Secretary of State has your LLC on file, California expects Form 568 every year until the entity is formally canceled. An LLC earning zero income still owes the return.
What Each Form Costs
California charges an $800 annual tax on LLCs, limited partnerships, and limited liability partnerships. General partnerships are exempt.5Franchise Tax Board. Partnerships The tax applies every year the entity exists, regardless of income or activity, and continues until the entity is canceled or dissolved with the Secretary of State.6California Legislative Information. California Revenue and Taxation Code 17941
LLCs owe an additional graduated fee based on total California income. Partnerships filing Form 565 never owe this fee. The tiers:7California Legislative Information. California Revenue and Taxation Code 17942
- $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
“Total income” here is not net profit. It means gross income plus cost of goods sold, often much larger than taxable income. An LLC with $3 million in revenue and slim margins still owes the $6,000 fee even if it barely breaks even.8Franchise Tax Board. FTB Pub. 3556 – Limited Liability Company Filing Information Underestimating the fee triggers a 10 percent penalty on the underpayment, with a safe harbor if you pay at least 100 percent of the prior year’s fee.9Franchise Tax Board. FTB 1024 Penalty Reference Chart
Due Dates and Payment Vouchers
Both Form 565 and Form 568 are due on the 15th day of the third month after the close of the taxable year. For calendar-year 2025 filers, that date is March 16, 2026, because March 15 falls on a Sunday.10Taxes. Important Dates for Income Tax California grants an automatic seven-month extension to file, moving the deadline to October 15.11Franchise Tax Board. Extension to File The extension covers the return, not payments.
The $800 annual tax deadline splits by entity type. For LLCs, the $800 is due on the 15th day of the fourth month of the taxable year, which is April 15 for calendar-year filers.6California Legislative Information. California Revenue and Taxation Code 17941 For limited partnerships and limited liability partnerships, the $800 is due when the return is due, the 15th day of the third month.12California Legislative Information. California Revenue and Taxation Code 17935 Mark both dates if you run both entity types.
Each payment uses its own voucher, and using the wrong one causes processing delays:
- FTB 3522, LLC Tax Voucher. LLCs use this to pay the $800 annual tax, due April 15 for calendar-year filers.2Franchise Tax Board. Limited Liability Company
- FTB 3536, Estimated Fee for LLCs. Used to remit the estimated graduated LLC fee, due June 15 for calendar-year filers.13Franchise Tax Board. 2025 Instructions for Form FTB 3536 Estimated Fee for LLCs
- FTB 3538, Payment for Automatic Extension. Limited partnerships and limited liability partnerships use this to pay the $800 annual tax when filing under extension.11Franchise Tax Board. Extension to File
Penalties for Filing the Wrong Form or Filing Late
California’s late filing penalty for both Form 565 and Form 568 is $18 per partner or member for each month the return is late, up to 12 months.14Franchise Tax Board. Common Penalties and Fees A 10-member entity filing six months late owes $1,080 before interest. A return filed on time but incomplete, such as one missing a required schedule, counts as a failure to file.9Franchise Tax Board. FTB 1024 Penalty Reference Chart
LLCs face a second late filing penalty stacked on top: 5 percent of unpaid tax, including the LLC fee, for each month the return remains unfiled, up to 25 percent. An LLC that misses the extended due date is penalized back to the original due date, not the extension date.15Franchise Tax Board. 2025 Instructions for Form 568 Limited Liability Company Tax Booklet For a late-filing LLC with unpaid fees, the combined penalty adds up quickly.
Filing the wrong form produces the same result as not filing. The return gets rejected or reclassified, the clock keeps running, and the penalty is calculated from the original due date. If you are unsure which form applies, the Secretary of State’s record of your entity type is the deciding fact.
How to Stop the $800 Clock
The $800 annual tax keeps accruing every year the entity exists. Stopping operations or letting the entity go dormant does not end it. To stop the tax, file a final return with the FTB (check the “Final Return” box) and file a certificate of cancellation or dissolution with the Secretary of State within 12 months.16Franchise Tax Board. Closing a California Business Entity
If the entity is already suspended or forfeited for unpaid taxes, you have to revive it first by paying all delinquent balances, penalties, and interest, before the Secretary of State will accept the cancellation.16Franchise Tax Board. Closing a California Business Entity Owners who abandon an entity without canceling it often find out years later that they owe thousands in back tax. An entity with no remaining assets that never conducted business, or that has stopped, may qualify for voluntary administrative cancellation, which can result in the FTB abating unpaid taxes, fees, and penalties.