California LLC Franchise Tax: $800 Annual Tax, Fees & Due Dates (2026)

The California LLC franchise tax is a minimum $800 yearly payment that most LLCs owe to the California Franchise Tax Board (FTB), even if the business earns nothing. On top of that, LLCs with higher California income pay an extra fee of up to $11,790. This guide explains who pays, how much, when it is due, and what happens if you miss it. It also covers a point that surprises many non-US founders: an LLC formed in another state can still owe the tax.

What Is the California LLC Franchise Tax?

People often say "California franchise tax" when they mean the annual LLC tax of $800. It is a fixed minimum tax for the privilege of operating an LLC in California, not a tax on your profit. California also charges a separate LLC fee based on your total California income, and both are collected by the FTB and reported on Form 568, the LLC return.

Who Must Pay the California LLC Franchise Tax?

You owe the $800 tax if your LLC is any of the following:

• Organized in California, meaning its Articles of Organization were filed with the California Secretary of State
• Registered in California as a foreign LLC
• Doing business in California, even if it was formed in another state

The tax applies even if your LLC had no income or activity during the year. If your LLC is formed in Wyoming or Delaware and has real business activity in California, it can owe the $800 and need to file Form 568 as well. Our guides to Wyoming and Delaware explain how those states work, but forming elsewhere does not remove California obligations if you do business there.

The $800 Annual Tax: Amount and Due Date

The amount is $800 per year for most LLCs. It is due by the 15th day of the 4th month of your LLC's tax year, which is April 15 for calendar-year LLCs. You pay it with Form FTB 3522 (the LLC Tax Voucher) or online through the FTB's payment service.

California used to give new LLCs a first-year exemption from the $800, but that applied only to LLCs formed or registered in the earlier 2021 to 2023 window. New LLCs generally no longer get it, so plan to pay from your first year. If your LLC's first tax year is 15 days or less, special rules can apply, so check with the FTB or a tax professional.

The LLC Fee Based on California Income

If your LLC's total income from California is $250,000 or more, you owe an extra annual fee on top of the $800. It is based on gross receipts plus cost of goods sold, not on profit:

• $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

You estimate and pay this fee with Form FTB 3536 by the 15th day of the 6th month of the tax year, which is June 15 for calendar-year LLCs. It is then reconciled on Form 568. Underpaying your estimate can lead to penalties, so make a careful estimate. LLCs below $250,000 generally owe no income-based fee, but they still owe the $800 tax.

Form 568: The Annual LLC Return

Every LLC that owes the tax files Form 568, the Limited Liability Company Return of Income, each year. The $800 tax and any LLC fee are reported there. The due date depends on how your LLC is classified for tax, so confirm yours with the FTB or a tax professional. An automatic six-month extension to file is available, but it does not extend the deadline to pay the $800 or the LLC fee.

Key Dates for a Calendar-Year LLC

• April 15: pay the $800 annual tax (Form FTB 3522)
• June 15: pay the estimated LLC fee, if your California income is $250,000 or more (Form FTB 3536)
• Form 568: file by the original due date for your LLC type, with an extension available to file but not to pay

If a date falls on a weekend or holiday, the deadline moves to the next business day.

Secretary of State Fees Are Separate

The FTB tax is not the only yearly cost. California LLCs also pay the Secretary of State for formation and for the Statement of Information, which is filed every two years. These fees go to a different agency than the FTB, so paying one does not cover the other. Check the Secretary of State's website for the current amounts.

What Happens If You Do Not Pay?

Unpaid tax can lead to penalties and interest, and the FTB can suspend your LLC. A suspended LLC can lose important rights, such as the right to use its name, enter into enforceable contracts, or defend itself in court. To revive it, you generally have to file every missing return, pay what is owed, and complete a revival process with a fee. If you close your LLC, file a final return and formally dissolve it so the $800 stops accruing.

Extra Points for Non-US Owners

• Think carefully before forming in California. If you only need a US company for online business and have no California presence, a state with lower yearly costs may suit you better. Our breakdown of the best state to form an LLC compares the options.
• Do not assume another state removes the tax. If you have real California customers, employees or property, you may still be doing business there.
• Keep your registered agent active. California sends official notices to your agent. Our guide to the LLC registered agent explains how to choose one.
• Remember federal filings. A foreign-owned single-member LLC may need to file Form 5472 with a pro forma Form 1120 each year. See our guide to Form 5472 and 1120 for foreign-owned LLCs.
• Check BOI rules. Federal beneficial ownership reporting has changed several times, so read our latest article on BOI filing for foreign-owned US companies.
• Indian founders: our US LLC tax guide for Indian founders covers the India side.

If you are comparing yearly costs across states, see how other states handle similar filings in our guides to the New Jersey LLC annual report and the Texas franchise tax report.

Common Mistakes to Avoid

• Assuming zero income means zero tax. The $800 is owed regardless.
• Basing the LLC fee on profit. It is based on total California income, including cost of goods sold.
• Missing the June 15 estimate. The LLC fee has its own payment date.
• Treating an extension as a payment extension. You still have to pay on time.
• Forgetting that other-state LLCs can owe. Doing business in California is what counts.
• Leaving an unused LLC open. File a final return and dissolve it if you stop operating.

Get Help Staying Compliant

FormLLC helps founders keep their US companies in good standing, from state filings and registered agent services to federal reporting. If you would like help understanding which state obligations apply to your LLC, book a free consultation with our team today.

*FormLLC is a business formation and compliance services provider, not a law firm, and this article is general information rather than legal or tax advice.*