1. What is California LLC Franchise Tax?
In California, people often say “franchise tax” when they mean the recurring
$800 annual LLC tax.
This is a yearly payment many LLCs must make to the
California Franchise Tax Board (FTB)
while the LLC is active,
registered, or
doing business in California
.
On top of the $800 annual tax, some LLCs also owe an extra LLC fee
based on
total income from California sources (a separate calculation).
2. What California LLCs Must Pay Each Year
Most California LLCs should plan for these recurring compliance items each year:
Annual compliance checklist
- $800 annual LLC tax: commonly paid using FTB 3522
- LLC fee (if applicable): based on total income from California sources, estimated using FTB 3536
- California LLC return: many LLCs file Form 568 each year
- Statement of Information (SOS): California Secretary of State filing schedule (separate from FTB tax)
- Bookkeeping + records: keep proof of payments/filings for bank and platform verification
3. The $800 Annual LLC Tax (FTB 3522)
The best-known California LLC obligation is the $800 annual LLC tax . Many LLCs pay this using the LLC Tax Voucher instructions (FTB 3522).
Important points about the $800 annual LLC tax
- It is typically due by the 15th day of the 4th month of your taxable year
- For many calendar-year LLCs, that commonly means April 15
- New LLCs also have a first-year payment timing rule (based on when you file/register)
- If paid late, you may face penalties and interest
- Keeping proof of payment helps during audits or bank/payment platform reviews
If you only remember one thing: California LLCs often owe $800 annually while active/doing business in CA—paid through FTB (commonly via FTB 3522).
4. Due Dates (Common Scenarios)
California’s $800 annual LLC tax is generally due by the 15th day of the 4th month of your taxable year. Many calendar-year LLCs treat this as an April 15 recurring deadline.
Common calendar-year example
- $800 annual LLC tax (FTB 3522): commonly due around April 15
- Estimated LLC fee (FTB 3536): commonly due around June 15 (if applicable)
- LLC return (Form 568): due dates vary by type/ownership and tax year
What can change the due date?
- Your LLC uses a fiscal year rules (not calendar year)
- Your LLC’s classification/ownership changes the return due date
- Your taxable year ends early (affects estimated fee rules)
- Holidays/weekends can shift deadlines to the next business day
STAY COMPLIANT
Click the button below and our team will guide you through California’s $800 annual tax, LLC fee (if any), and Form 568 filing—fast and correctly.
Get Compliance Help5. The LLC Fee (FTB 3536) — When It Applies
Besides the $800 annual LLC tax, many California LLCs must pay an additional LLC fee if their total income from California sources .
Key points about the LLC fee
- The LLC fee is separate from the $800 annual LLC tax
- It is based on total income from California sources (gross income concept used by CA for this fee)
- Many LLCs estimate and pay it using FTB 3536
- The estimated fee payment is commonly due by the 15th day of the 6th month of the taxable year (calendar-year often June 15)
- If you don’t owe a fee, you typically don’t submit the estimated fee voucher
| Item | What it is | Common timing | Form |
|---|---|---|---|
| $800 annual LLC tax | Annual tax for many CA LLCs while active/doing business | 15th day of 4th month (often Apr 15) | FTB 3522 |
| LLC fee (if applicable) | Additional fee based on total income from CA sources | Estimated by 15th day of 6th month (often Jun 15) | FTB 3536 |
| LLC return | California LLC income/tax return filing | Varies by type/ownership & tax year | Form 568 |
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Most confusion comes from mixing up the $800 annual tax and the LLC fee. They are different. If you cross CA income thresholds, you may owe both. Clean records and on-time payments help avoid banking/payment holds.
6. How to File California Form 568 (Step-by-Step)
Step 1: Confirm your LLC’s ownership and classification
California due dates can vary depending on whether the LLC is single-member, multi-member, or owned by an entity. Start by confirming the LLC’s ownership and how it is treated for tax purposes.
Step 2: Collect key details
Prepare your LLC’s legal name, CA entity number, addresses, registered agent info (if relevant), and your financial totals used for any fee calculations.
Step 3: Pay the $800 annual LLC tax (if due)
Many LLCs pay the $800 annual LLC tax using FTB 3522. Keep the payment confirmation for your records.
Step 4: Estimate and pay the LLC fee (if applicable)
If your LLC’s total income from California sources crosses the threshold, estimate and pay using FTB 3536 . If you do not owe the fee, you typically do not submit the estimated fee voucher.
Step 5: File Form 568 and save proof
File your California LLC return (Form 568) and keep a copy of the filed return plus all payment receipts. This is useful for future compliance reviews, audits, and bank/payment processor verification.
7. Tips to Stay Compliant
- Set recurring reminders for the $800 annual LLC tax (15th day of the 4th month)
- If your income is growing, track whether you may owe the LLC fee (and estimate by the 15th day of the 6th month)
- Save receipts and confirmations (FTB payments + filed return copies)
- Don’t forget California SOS filings (like Statements of Information) — separate from FTB
8. Fees, Penalties & Good Standing
- $800 annual LLC tax: recurring annual payment for many LLCs
- LLC fee: applies only if you cross CA income thresholds (varies by income)
- Late payments: may trigger penalties and interest
- Good standing impact: compliance affects banking, merchant accounts, contracts, and vendor onboarding
| Compliance Item | Typical Timing | Fee |
|---|---|---|
| $800 Annual LLC Tax | 15th day of 4th month of tax year (calendar-year often Apr 15) | $800 |
| Estimated LLC Fee (if applicable) | 15th day of 6th month of tax year (calendar-year often Jun 15) | Varies |
| California LLC Return | Annually (varies by type/ownership) | Varies |
| California SOS Statement of Information | Periodic/recurring SOS filing (separate from FTB) | Varies |
9. Nonresident / Foreign LLC Notes
1. “Doing business in California” matters
Foreign (out-of-state) LLCs that register or do business in California can still trigger California’s annual tax and filing requirements. If you have customers, operations, inventory, or active business presence in CA, you may be treated as doing business there.
2. Don’t mix federal and California rules
Your IRS filing classification (SMLLC vs partnership vs corporate treatment) affects federal returns, but California still has its own recurring $800 annual tax and fee system for many LLCs.
3. If you stop operating, properly close/withdraw
If you want to stop California obligations, you generally need to properly dissolve (CA LLC) or withdraw (foreign LLC) and file any required final filings. Otherwise, the state may still treat the LLC as active.
10. Conclusion
The biggest takeaway: most California LLCs must handle a recurring $800 annual LLC tax, and some LLCs also owe an additional LLC fee based on total income from California sources.
With FormLLC, you can stay compliant without confusion—our team helps you follow the right schedule, pay the right amounts, and keep your business in good standing.
11. Frequently Asked Questions
In most cases, yes. Many California LLCs must pay the $800 annual LLC tax each taxable year while active/registered/doing business in California.
The $800 annual LLC tax is generally due by the 15th day of the 4th month of your taxable year. Many calendar-year LLCs treat this as April 15.
The LLC fee is an additional amount that may apply if your LLC has total income from California sources above certain thresholds. Many LLCs estimate and pay it using FTB 3536.
Often, yes. Even with low or zero income, many LLCs still owe the $800 annual LLC tax if they are active/registered/doing business in California. Always confirm your exact situation.
Many California LLCs file Form 568 annually. Payment and due dates can vary depending on ownership and taxable year.
California had a first-year exemption for certain entities organized/registered within a specific window. For LLCs formed/registered outside that window, the $800 is generally due. Confirm the rule for your formation date.
If you no longer need the LLC, you typically must properly dissolve (CA LLC) or withdraw (foreign LLC) and file any required final returns/payments. Otherwise, California may still treat the LLC as active.
