A California LLC owes an annual tax even before it earns anything. Here is what FTB says you owe and when.

Key takeaways:

• Every California LLC owes the $800 annual tax until it cancels.
• The LLC fee runs from $900 to $11,790 depending on total California income.
• The first-year exemption covered tax years beginning in 2021 through 2023 only.
• Calendar the tax (15th day of month 4) and the fee (15th day of month 6).

1. The $800 annual tax

Every LLC doing business in California or organized there owes the $800 annual tax, even if it isn’t conducting business, until it cancels, according to the Franchise Tax Board (FTB). It is due on the 15th day of the 4th month of the tax year, and for a first-year LLC the fourth month is counted from the date it files with the Secretary of State. The payment voucher is Form FTB 3522.

For a related walkthrough of choosing a state, see how to incorporate a company in the U.S. and LLC vs. C corp for startups.

2. The LLC fee by income

On top of the $800, FTB charges an LLC fee based on total California income. FTB’s table lists:

• $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 due on the 15th day of the 6th month of the current tax year and is paid with Form FTB 3536. FTB’s page says the fee applies to income “more than $250,000” while its table starts at $250,000, so confirm the exact threshold with FTB if you are near that line.

3. Key dates

Put both dates on a calendar. FTB also notes that the Secretary of State requires a Statement of Information to keep the LLC active, with a $250 penalty for not filing it that FTB collects. Suspended LLCs get no automatic filing extensions.

4. The first-year exemption

FTB states that for tax years beginning on or after January 1, 2021, and before January 1, 2024, LLCs are not subject to the $800 tax for their first tax year. That window has closed for new LLCs, so do not assume your new LLC gets a free first year. Check FTB’s current page before you rely on any exemption.

5. Closing the LLC

An LLC that stops operating still owes the annual tax until it is cancelled. See how to close a California LLC.

6. Compare costs across states

California is one of several states with ongoing costs beyond the filing fee. For a side-by-side with Texas, Florida, and New York, see LLC formation costs by state.

Where DoubleCheck fits

DoubleCheck is built for businesses that start legal work with AI. Bring your question or draft, use an AI-first workflow to understand and verify it, and when professional advice is warranted, you can connect with an independent attorney. Attorneys on DoubleCheck are independent professionals; an attorney-client relationship forms only if an attorney accepts your engagement.

Sources: FTB: Limited liability company.

FAQ

How much is the California LLC annual tax?

$800 a year for every LLC doing business in California or organized there, until it cancels, according to FTB.

When is the $800 due?

The 15th day of the 4th month of the tax year. For a first-year LLC, the fourth month is counted from the date it files with the Secretary of State.

What is the California LLC fee?

An additional fee based on total California income: $900 for $250,000 to $499,999, $2,500 for $500,000 to $999,999, $6,000 for $1 million to $4,999,999, and $11,790 for $5 million or more.

Does a new California LLC get a free first year?

FTB’s exemption applied to tax years beginning on or after January 1, 2021 and before January 1, 2024. Check FTB’s current page for today’s rules.

---

General information only. This article is not legal, tax, investment, or accounting advice.