Most LLCs organized in California, registered with the California Secretary of State, or doing business in California owe an $800 annual tax, subject to applicable exceptions. The tax is generally paid using FTB Form 3522 by the 15th day of the 4th month of the tax year. LLCs with total California income of $250,000 or more generally owe a separate LLC fee, estimated using FTB Form 3536. LLCs taxed as partnerships or disregarded entities generally report these amounts on Form 568, while LLCs taxed as corporations follow the applicable corporate filing rules.
This guide covers who owes each charge, what “total California income” means, which form pays what, the due dates for a calendar-year LLC, the penalties for missing them, and how an S corporation election changes the picture.
FTB Form 3522, the LLC Tax Voucher, pays the $800 annual tax. According to the FTB, every LLC that is organized in California or doing business in California owes it. An LLC also owes it if it is registered with the California Secretary of State (SOS). Any one of the three is enough.
That includes out-of-state LLCs. If your LLC was formed in Nevada or Delaware but does business in California, it can owe the $800 here as well.
The $800 is a fixed annual charge, not an income tax. Zero revenue, no activity, or a loss does not remove it. It also continues until the LLC is formally cancelled with the state. Simply closing the bank account or stopping operations does not end it.
For a California-organized LLC, the first taxable year begins when its Articles of Organization are filed with the Secretary of State, and the first-year payment is due by the 15th day of the 4th month of that first tax year. The FTB’s own example counts the formation month as the first month: an LLC that files in June has its first payment due September 15.
For an LLC formed in another state, the timing of its first-year payment depends on when it begins doing business in California or registers with the state.
For several years, new LLCs got a break. LLCs organized or registered for tax years beginning on or after January 1, 2021 and before January 1, 2024 did not owe the $800 in their first year. That exemption has ended. An LLC formed after 2023 owes the $800 in its first year. The FTB’s current 2026 LLC Tax Voucher lists only two narrow exemptions, for certain tax-exempt LLCs and for small businesses solely owned by a deployed member of the Armed Forces, and neither is a general new-LLC exemption.
The LLC fee is a second charge, on top of the $800. It applies only when an LLC’s total California income reaches $250,000. Smaller LLCs owe only $800.
This is the part owners most often get wrong. The fee is not based on profit. The FTB’s instructions for the LLC Income Worksheet (Schedule IW) define “total income” as gross income plus the cost of goods sold paid or incurred in the business, limited to income derived from or attributable to California.
In plain words, think of it as California revenue before you subtract the costs of producing what you sold. That is why this article uses “gross receipts” as the everyday shorthand, while “total California income” is the FTB’s term. An LLC with a thin margin, or a loss, can still have high total California income.
Example: An LLC has $600,000 in total California income and ends the year with a net loss. It still owes the $800 annual tax plus a $2,500 LLC fee, or $3,300 in all.
California-source income can come from selling goods to California customers, providing services that benefit people in California, or owning intangibles used in California. Where income is assigned depends on the FTB’s sourcing rules, so LLCs with sales in several states should work through Schedule IW carefully.
Total CA income | LLC fee | Form | Due date |
|---|---|---|---|
Any amount ($800 annual tax) | $800 | FTB 3522 | 15th day of 4th month of tax year |
Under $250,000 | $0 | — | — |
$250,000 – $499,999 | $900 | FTB 3536 (estimate); Form 568 | 15th day of 6th month (estimate) |
$500,000 – $999,999 | $2,500 | FTB 3536; Form 568 | 15th day of 6th month |
$1,000,000 – $4,999,999 | $6,000 | FTB 3536; Form 568 | 15th day of 6th month |
$5,000,000 or more | $11,790 | FTB 3536; Form 568 | 15th day of 6th month |
The LLC fee is in addition to the $800 tax, and both are reconciled on Form 568.
Not sure whether your LLC owes the fee, or whether your estimates are on track? Get Your LLC Compliance Review.
FTB Form 3522, the LLC Tax Voucher, pays the $800 annual tax. It is due by the 15th day of the 4th month of the tax year, which is April 15 for a calendar-year LLC. If you pay online, you do not mail the voucher.
FTB Form 3536, the Estimated Fee for LLCs, pays the LLC fee in advance. It is due by the 15th day of the 6th month of the tax year, which is June 15 for a calendar-year LLC. It is used only if the LLC owes a fee. If the fee is owed, the full amount is due by the return due date.
Form 568, the Limited Liability Company Return of Income, reports the $800 tax and the LLC fee, along with income and other information. The due date depends on how the LLC is classified; see the next section.
When a due date falls on a weekend or holiday, it moves to the next business day. Fiscal-year LLCs use the same “15th day of the Xth month” rules, counted from their own tax-year start. An extension to file Form 568 is not an extension to pay.
To avoid the 10% underpayment penalty on the fee, the FTB’s Form 3536 instructions say the estimated payment should at least equal the total fee for the preceding year, or cover the fee owed for the current year. The FTB’s official payment options are on its payment page. Reconciling these payments on Form 568 is much easier when your books are current; see bookkeeping and financial management.
Both types of LLC are separate entities for California’s annual tax, LLC fee, and return filing, even when the federal return treats the LLC as part of its owner.
Single-member LLC | Multi-member LLC | |
|---|---|---|
Tax classification | Disregarded entity (federal) | Partnership (federal) |
Files Form 568? | Yes, still required | Yes |
Form 568 due date (calendar year) | Generally April 15 if owned by an individual | March 15 |
How income reaches the owner(s) | Reported on the owner’s own return | Schedule K-1 (568) for each member |
$800 tax and LLC fee apply? | Yes, both | Yes, both |
The common miss is the single-member LLC that assumes it can skip Form 568 because the owner reports everything on a personal return. It cannot. The FTB’s filing information says a disregarded single-member LLC still counts as a separate entity for the annual tax, the fee, and return filing. A single-member LLC owned by a pass-through entity follows the third-month deadline instead of the owner’s date, so confirm your owner’s classification.
The $800 tax and the LLC fee are separate from California’s pass-through entity elective tax, which some LLCs taxed as partnerships may be able to elect. Our guide to the California PTE tax explains who can make that election.
Missed deadlines add cost, but the consequences are manageable if you act early. Here is what the FTB describes:
In plain words, suspension can cut into the LLC’s ability to operate normally, which is why a small unpaid balance is worth resolving quickly. A CPA can help you respond to penalty notices, though that is usually a separate engagement from preparing the return. If you are choosing one, see our guide to choosing a small business CPA in Los Angeles.
Received an FTB notice or unsure where your LLC stands? Get Your LLC Compliance Review.
The $800 continues until the LLC is formally cancelled. To close a California LLC properly, the business must settle outstanding tax obligations and file any required final tax returns with the FTB, marking the final return as required. It must also file the appropriate cancellation documents with the California Secretary of State and cease doing business in California. The two filings go to different agencies: cancellation documents are filed with the Secretary of State, while applicable tax returns are filed with the FTB. The required steps depend on the LLC’s status and circumstances, and the FTB’s Publication 1038 explains them.
An LLC that elects S corporation tax treatment is taxed as a corporation in California. It generally files Form 100S, the California S Corporation return, instead of Form 568. California S corporations generally pay the greater of the $800 minimum franchise tax or 1.5% of net income, subject to relevant exceptions. These are not two separate taxes. The FTB treats LLCs classified as corporations under its corporate filing rules rather than the Form 568 rules.
That does not make the election the right move. Whether it saves money depends on income, owner pay, payroll costs, and other facts, and it adds requirements of its own. For questions about entity structure, see business tax planning and strategy.
Every California LLC owes the $800 annual tax every year until it is formally cancelled. Once total California income reaches $250,000, a separate LLC fee applies, based on revenue rather than profit. Form 568 reports both. Keeping the three forms and their dates straight is the simplest way to avoid penalties.
If you would like a second look at your LLC’s filings, Get Your LLC Compliance Review with the NexusWorks team, led by California-licensed CPAs. The review is a conversation about your situation, and the firm cannot promise savings or particular outcomes.
Yes. The $800 annual tax is owed even if the LLC has no income, no activity, or a loss. It continues each year until the LLC is formally cancelled with the state, not just when the business stops operating, so inactive LLCs still need to pay.
It is due by the 15th day of the 4th month of the LLC’s tax year, which is April 15 for calendar-year LLCs. For a new LLC, the first payment is due by the same day-of-month rule counted from formation, using FTB Form 3522.
No. They are separate charges. The $800 tax applies to LLCs organized in, registered in or doing business in California; the fee applies only at $250,000 or more of total California income. They use FTB 3522 and 3536 and different deadlines. For LLCs required to file Form 568, both are reported or reconciled through the applicable filing and payment process.
It is based on total California income, which is broadly gross receipts plus cost of goods sold, not profit. An LLC with a net loss can still owe the fee if its California revenue reaches the $250,000 threshold, so check revenue, not profit.
Yes. A single-member LLC that is disregarded for federal tax purposes still files Form 568 with the FTB and is separate for the annual tax and LLC fee. It is generally due on the owner’s return due date, April 15 for an individual.
