How to Pay Franchise Tax in California: Forms, Deadlines, and Penalties

To pay California franchise tax, file the correct voucher for your entity (Form 3522 for an LLC’s $800 annual tax, Form 3536 for the LLC income-based fee, or Form 100-ES for a corporation’s estimated tax) and send the money to the Franchise Tax Board through Web Pay, by credit card, or by check in the mail, on or before the deadline that applies to your entity type. Everything else — the amount, the form, the due date, and the penalty for missing it — depends on whether you run an LLC, a corporation, or a partnership.

How Much You Owe

Any entity organized in California, qualified to do business here, or actually conducting business in the state owes the franchise tax. Profit is irrelevant; registration with the Secretary of State creates the obligation.1Franchise Tax Board. Limited Liability Company

LLCs

Every LLC doing business in or organized in California pays $800 a year.2California Legislative Information. California Code Revenue and Taxation Code RTC Section 17941 If total California-source income reaches $250,000, an additional graduated fee applies on top of the $800:

  • $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 fee is calculated on total income from all sources reportable to California, not just profit.3Justia. California Revenue and Taxation Code Sections 17941-17946

Corporations

Corporations owe the greater of $800 or net income times the applicable rate. C corporations pay 8.84 percent. S corporations pay 1.5 percent, with the $800 minimum still applying. Banks and other financial institutions pay an additional 2 percent on top of these rates. A new corporation’s very first taxable year is exempt from the $800 minimum, though any net income earned that year is still taxed at the standard rate.2California Legislative Information. California Code Revenue and Taxation Code RTC Section 17941

LPs and LLPs

Limited partnerships and limited liability partnerships each owe $800 annually, with no income-based add-on.4Franchise Tax Board. Due Dates Businesses

The temporary first-year waiver that covered new LLCs, LPs, and LLPs for taxable years beginning on or after January 1, 2021, and before January 1, 2024, has expired. New LLCs, LPs, and LLPs now owe the full $800 in their first year.1Franchise Tax Board. Limited Liability Company

Which Form to Use

The FTB uses a different voucher depending on entity type and payment type. The wrong form can delay processing or apply the money to the wrong account.

Every voucher asks for the business name exactly as it appears on your state registration, the beginning and ending dates of the taxable year, the California Secretary of State (SOS) file number, and the Federal Employer Identification Number. Corporations use a 7-digit SOS number; LLCs use a 9-digit or 12-character number.8Franchise Tax Board. Entity ID Number to Use for Electronic Payment Methods Errors here can push your payment onto the wrong account or the wrong tax year. If you pay electronically, skip the paper voucher.

When Payment Is Due

Due dates track entity type, not a single statewide date. When any due date falls on a weekend or legal holiday, the deadline moves to the next business day.

LLCs

The $800 annual tax is due by the 15th day of the 4th month after the beginning of the taxable year. Calendar-year LLCs owe by April 15. A new LLC’s first $800 is due by the 15th day of the 4th month after articles of organization are filed with the Secretary of State.1Franchise Tax Board. Limited Liability Company

The estimated income-based fee on Form 3536 has its own deadline: the 15th day of the 6th month of the current taxable year, which is June 15 for calendar-year filers. You estimate what you expect to owe and true it up on the annual return.4Franchise Tax Board. Due Dates Businesses

Corporations

Corporations pay estimated franchise tax in installments due on the 15th day of the 4th, 6th, 9th, and 12th months of the taxable year. For calendar-year corporations, that’s April 15, June 15, September 15, and December 15.

The installments are not equal. California requires 30 percent of the total estimated tax with the first payment, 40 percent with the second, nothing with the third, and 30 percent with the fourth. The second installment is the largest, and the third-quarter voucher is essentially a placeholder. The first installment must cover at least the $800 minimum unless the corporation qualifies for the first-year exemption.9Franchise Tax Board. 2025 Instructions for Form 100-ES Corporation Estimated Tax – Section: D. Installment Due Dates and Amounts

LPs and LLPs

Limited partnerships, limited liability partnerships, and limited liability limited partnerships owe the $800 by the 15th day of the 3rd month after the close of the taxable year. For calendar-year entities, that’s March 15, and note that this is measured from the close of the year, not the beginning.4Franchise Tax Board. Due Dates Businesses

Three Ways to Send the Payment

Web Pay

The FTB’s Web Pay portal is the fastest option. Select your entity type, enter your SOS number and FEIN, choose the payment type (LLC annual tax, corporate estimated tax, and so on), and provide your bank routing and account numbers. You can schedule the payment for the same day or a future date, which is useful for queuing something up ahead of a deadline. Save or print the digital confirmation page after submitting.4Franchise Tax Board. Due Dates Businesses

Credit Card

Credit card payments go through a third-party vendor authorized by the FTB, which charges a 2.3 percent service fee. On an $800 tax payment, that adds $18.40.10Franchise Tax Board. Pay by Credit Card Enter your entity’s identification numbers and the tax year, and the vendor returns a confirmation number once the transaction is authorized. The convenience fee is not a tax payment, so track it separately.

Check or Money Order by Mail

You can still mail a check or money order with the correct voucher form. Make it payable to the “Franchise Tax Board” and write your SOS file number and the tax year in the memo line. Send it to:

Franchise Tax Board
P.O. Box 942857
Sacramento, CA 94257-050111Franchise Tax Board. Mailing Addresses

A mailed payment counts as timely if the U.S. Postal Service postmark is on or before the due date. Certified mail with a return receipt creates a verifiable record if a dispute comes up later. Keep a photocopy of the check and the signed voucher too.

What Late Payment Costs

Missing a franchise tax deadline triggers both a penalty and running interest. The late payment penalty is 5 percent of the unpaid tax, plus 0.5 percent for each month or partial month the balance stays unpaid, up to 40 months.12Franchise Tax Board. Common Penalties and Fees For LLCs, penalties apply to both the unpaid annual tax and the LLC fee if applicable.

Interest runs on top of the penalty. From July 1, 2025 through June 30, 2026, the FTB charges 7 percent interest on underpayments for both personal income tax and corporation tax. The estimated tax penalty rate is 4 percent for the same period.13Franchise Tax Board. Interest and Estimate Penalty Rates Interest compounds daily. On a plain $800 balance the running total stays modest, but for a corporation or a high-income LLC owing thousands, the penalty plus interest picture gets ugly quickly.

If You Let It Go Long Enough: Suspension

Unpaid franchise tax eventually causes the FTB to suspend your business entity. A suspended entity loses nearly all of its legal powers in California.14California Legislative Information. California Code RTC 23301 It cannot conduct business legally, sue or defend itself in court, sell or transfer real property, maintain the right to its business name, file or maintain a tax appeal, or dissolve and close.15Franchise Tax Board. My Business Is Suspended

The most overlooked exposure: any contract signed while suspended can be voided by the other party. Leases, vendor agreements, and customer deals all become unenforceable against the other side until the entity is back in good standing. Revival requires filing every delinquent return, paying every outstanding balance (including penalties, fees, and interest), and submitting a revivor request to the FTB.15Franchise Tax Board. My Business Is Suspended

Paying Off the Franchise Tax When You Close the Business

Dissolving, surrendering, or canceling with the Secretary of State does not close out your franchise tax account. That’s a separate step, and skipping it is one of the more common shutdown mistakes.

To finish with the FTB you need to file all delinquent returns and pay every outstanding balance (including penalties, fees, and interest), file the final-year return with the “Final Return” box checked on page one and “final” written at the top, and stop conducting business in California after the final taxable year.16Franchise Tax Board. Closing a California Business Entity If the entity is already suspended, you have to go through revivor before you can dissolve, which means paying the full balance to get back into good standing first.