Every California LLC owes an $800 annual franchise tax to the Franchise Tax Board, and the first payment is due by the 15th day of the fourth month after you file your Articles of Organization. After that, the $800 comes due on the same date every year. On top of that, LLCs with $250,000 or more in California income owe an additional income-based fee, every LLC files Form 568 each year, and the Secretary of State collects a $20 Statement of Information every two years. Miss any of these and penalties start the day after the deadline.
The $800 Annual Franchise Tax
California charges every LLC organized or doing business in the state $800 a year, whether or not the LLC earned a dollar.1Franchise Tax Board. Limited Liability Company The tax keeps accruing every year until you formally cancel the LLC. Shutting the doors or going quiet does not end the obligation.
Your First Payment
The first $800 is due by the 15th day of the fourth month after you file your Articles of Organization.1Franchise Tax Board. Limited Liability Company File on January 10 and the first payment lands May 15 of the same year. File on September 1 and it’s due January 15 of the following year.
California waived the first-year $800 for LLCs formed between January 1, 2021 and December 31, 2023. That waiver has expired. Any LLC formed in 2024 or later owes the full $800 in year one.1Franchise Tax Board. Limited Liability Company One narrow exception: if you cancel using the short-form cancellation (Form LLC-4/8) within one year of organizing, you won’t owe the first-year tax.
Every Year After That
After year one, the $800 is due by the 15th day of the fourth month of each taxable year.1Franchise Tax Board. Limited Liability Company For calendar-year LLCs, that’s April 15. If the date lands on a weekend or holiday, you get the next business day. Pay it using FTB Form 3522.2Franchise Tax Board. 2025 Instructions for Form FTB 3522 LLC Tax Voucher
The Income-Based LLC Fee
If your LLC’s total California income reaches $250,000, you owe a second fee on top of the $800. The statute defines total income as gross income plus cost of goods sold from California sources, so this is a revenue measure, not a profit measure. High-revenue, thin-margin businesses get caught.3California Legislative Information. California Revenue and Taxation Code 17942
The tiers:
- $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
This fee is in addition to the $800 annual tax. An LLC with $600,000 in total California income owes $800 plus $2,500, for a combined $3,300.3California Legislative Information. California Revenue and Taxation Code 17942
You estimate the fee and pay it by the 15th day of the sixth month of your taxable year, which is June 15 for calendar-year filers.4Franchise Tax Board. 2026 FTB 3536 Estimated Fee for LLCs Instructions Use FTB Form 3536 for that estimated payment. The final number gets reconciled when you file Form 568.
Form 568: The Annual Return
Paying the tax is not the same as filing a return. Every LLC organized or doing business in California must file Form 568, the Limited Liability Company Return of Income, regardless of how many members it has.5Franchise Tax Board. 2024 Instructions for Form 568 Limited Liability Company Tax Booklet This is where you report income, compute the income-based fee, and reconcile what you already paid.
Due dates depend on how your LLC is classified for tax purposes:
- Multi-member LLCs taxed as partnerships: March 15 for calendar-year filers (the 15th day of the third month after the close of the taxable year).
- Single-member LLCs owned by an individual: April 15 for calendar-year filers (the 15th day of the fourth month).
- Single-member LLCs owned by a pass-through entity, such as an S corporation, partnership, or another LLC taxed as a partnership: March 15.
These dates come from the FTB’s official due date schedule.6Franchise Tax Board. Due Dates: Businesses Extensions are available to file, but an extension to file is not an extension to pay. Any tax or fee owed is still due on the original date.
Statement of Information: A Separate Filing with a Separate Agency
The $20 Statement of Information goes to the Secretary of State, not the Franchise Tax Board. It keeps your public record current: principal office address, managers or managing members, and agent for service of process.
The first one is due within 90 days of forming your LLC. After that, you file every two years during a six-month window that ends on the last day of the month you were formed. Form an LLC in August, and your biennial window runs from March through August of each filing year.7California Secretary of State. Statements of Information Filing Tips
The fee is $20. File online through the Secretary of State’s bizfile portal.8California Secretary of State. bizfile Miss the deadline and the Secretary of State assesses a $250 penalty.9California Secretary of State. Instructions for Completing the Statement of Information (Form LLC-12) If something changes between filings, you can submit an amended Statement of Information any time with no additional fee.10CA.gov. Business Entities Fee Schedule
What Happens If You Pay Late
Miss the $800 or the income-based fee deadline and the FTB applies two penalties on top of what you owe:11Franchise Tax Board. Common Penalties and Fees
- A 5% underpayment penalty, assessed immediately.
- A 0.5% monthly penalty for each month or partial month the balance stays unpaid, up to 40 months.
If you miss the June 15 estimated income-based fee, that’s a separate 10% penalty on the underpaid amount.11Franchise Tax Board. Common Penalties and Fees Interest also runs on unpaid balances. Through June 30, 2026, the FTB charges 7% interest on underpayments.12Franchise Tax Board. Interest and Estimate Penalty Rates
Leave the balance unpaid long enough and the FTB will suspend your LLC. A suspended LLC loses its legal powers in California. It cannot sue or defend itself in court, cannot pursue a tax appeal, and any contract it signs while suspended is voidable by the other party. That last consequence tends to catch owners off guard: a client or vendor can walk away from a deal signed during suspension and leave you with no recourse until you’re reinstated. Reinstatement requires filing all delinquent returns, paying everything owed, and requesting that the suspension be lifted.13Franchise Tax Board. My Business Is Suspended
How to Pay
The $800 annual tax and the income-based fee both go to the Franchise Tax Board. Three options:
- Web Pay. Free bank transfer through the FTB’s online portal.14Franchise Tax Board. Pay by Bank Account (Web Pay)
- Credit card, with a convenience fee charged by a third-party processor.15Franchise Tax Board. Payment Options
- Check by mail with the right voucher: Form 3522 for the $800 annual tax, Form 3536 for the estimated income-based fee. The vouchers route to different processing addresses, so don’t swap them. If you pay online, skip the voucher entirely.2Franchise Tax Board. 2025 Instructions for Form FTB 3522 LLC Tax Voucher
The $20 Statement of Information fee goes to the Secretary of State, paid through bizfile when you file Form LLC-12.
Stopping the $800 Clock
The $800 keeps accruing every year until you formally cancel. A dormant LLC is still a billable LLC. To shut it down cleanly you have to satisfy both agencies.16Franchise Tax Board. FTB Publication 1038
With the FTB: file all delinquent returns, pay any outstanding balance including penalties and interest, and file your final-year Form 568 marked as a final return. With the Secretary of State: file a Certificate of Cancellation (Form LLC-4/7), or the short-form version (Form LLC-4/8) if you qualify.
You can avoid the $800 for the cancellation year itself if you stop doing business before that taxable year begins, file your final return on time for the preceding year, and submit the Secretary of State cancellation forms within 12 months of that final return’s filing date. Cancel a few days late and you’ll owe another $800.