Last updated November 20, 2020

California LLC Annual Fee

Your California LLC has to pay annual fees to the state to remain in good standing and be able to do business in California.

The fees include the following items:

  • Statement of Information (every 2 years)
  • Annual LLC Franchise Tax (every year)
  • Estimated Fee for LLCS (every year)
  • LLC Return of Income (every year)

Important: The state will suspend or shut down your California LLC if you don’t comply with these legal requirements. To avoid this, submit the necessary fees and documents. It’s the only way your LLC can keep doing business in California.

Statement of Information Filing Fee ($20)

The Statement of Information updates the state with your LLC’s contact details.

The filing fee is $20 for every year you submit your Statement of Information. The fee is payable to the “Secretary of State” with a check or money order.

You’ll need to submit your first Statement of Information within 90 days after the state approves your LLC.

Afterwards, you must submit it every 2 years. Each submission must be made before your LLC’s approval date (the date your Articles of Organization were stamped and approved by the state).

You can download the California LLC Statement of Information here:
https://bpd.cdn.sos.ca.gov/llc/forms/llc-12.pdf

You can then mail it with the filing fee to this address:

Secretary of State
Statement of Information Unit
PO Box 944230
Sacramento, CA 94244-2300

(For more help on submitting your Statement of Information, you can watch this video)

Need help with your California LLC?
Have a professional LLC service file for you:

Northwest ($39 + state fee) or LegalZoom ($149 + state fee)

(check out Northwest vs LegalZoom)

Annual LLC Franchise Tax ($800)

California charges your business an Annual LLC Franchise Tax of $800. It is filed with Form 3522 (LLC Tax Voucher).

The Franchise Tax must be paid by all California LLCs regardless of how much they earn.

You must submit your first Form 3522 by the 15th day of the 4th month after you filed your LLC.

(The count starts from the month you filed your LLC regardless of the day of the month you actually filed your paperwork.)

After that, you’ll have to submit Form 3522 by April 15th every year.

Avoiding the $1,600 franchise tax: If you’re forming your CA LLC later in the year (October through December), you’ll end up owing two $800 payments to the state within a few months. You can avoid this by using a future file date (making your LLC go into existence in January). For more information, please see avoiding $1,600 LLC franchise tax.

Download Form 3522:

  1. Go to the FTB Forms page
  2. Click “Online”
  3. Select the appropriate tax year
  4. Select “Limited Liability Companies”
  5. Click “Get Forms”
  6. Look for Form 3522 and click the link to download

Estimated Fee for LLCs ($900 – $11,790)

The Estimated Fee for LLCs only applies to LLCs that make $250,000 or more during a taxable year. This is filed on Form 3536 and is calculated based on your California LLC’s gross receipts (total revenue). The larger the gross receipts, the higher the fee.

Here is the fee table from the CA Franchise Tax Board:

LLC estimated income Fee
$0 - $249,999 $0
$250,000 - $499,999 $900
$500,000 - $999,999 $2,500
$1,000,000 - $4,999,999 $6,000
$5,000,000 or more $11,790

(Source: Section 17942, Revenue and Taxation Code)

You must first submit Form 3536 by the 15th day of the 6th month after you filed your LLC.

(The count starts from the month you filed your LLC regardless of the day of the month you actually filed your paperwork.)

After that, you’ll have to submit it by June 15th every year.

Download Form 3536:

  1. Go to the FTB Forms page
  2. Click “Online”
  3. Select the appropriate tax year
  4. Select “Limited Liability Companies”
  5. Click “Get Forms”
  6. Look for Form 3536 and click the link to download

LLC Return of Income (Fee Varies)

Each year, all LLCs must also file Form 568, called the LLC Return of Income. It summarizes your California LLC’s financial activity during a taxable year.

In this form, you’ll report the:

  • $800 Annual Franchise Tax
  • Estimated Fees (if applicable)
  • LLC’s income, deductions, gains, losses, etc.
  • Other taxes paid, including use taxes related to real estate sales

You’ll also have to report and pay:

  • Any deficits and penalties after you filed Form 3536 (if applicable)
  • The taxes of any non-resident member of your LLC

Form 568 is due each year, usually by March 15th or April 15th.

If your LLC is taxed as Sole Proprietorship, the due date for most filers will be April 15th.

If your LLC is taxed as Partnership, the due date for most filers will be March 15th.

If your LLC is taxed as an S-Corp or C-Corp, you shouldn’t file Form 568, but instead file Form 100S (S-Corporations) or Form 100 (C-Corporations). In this case, Form 100S or Form 100 must be filed by March 15th.

Download Form 568:

  1. Go to the FTB Forms page
  2. Click “Online”
  3. Select the appropriate tax year
  4. Select “Limited Liability Companies”
  5. Click “Get Forms”
  6. Look for “568 Form” and click the link to download
  7. Also download the “Booklet” for instructions and applicable 568 schedules

Get a Good CPA/accountant

Paying the correct fees and filing taxes for your California LLC can be complicated. If done incorrectly, it might even harm your business.

For this reason, we recommend you get a qualified California CPA/accountant to help you file your taxes.

Try using our “knights of the roundtable” strategy to find a good accountant:
How to find an accountant for your LLC

You can also contact the California Franchise Tax Board for further questions:

Hours:
Monday – Friday, 8am – 5pm PT

Phone:
888-635-0494 Collections (option 3, option 3, option 0)
800-852-5711 Main (taxpayer service center, general questions)

Wait Times:
Wait times can be quite long if you call during the middle of the day. We recommend getting up early and calling them at 8:00am.

Live chat: https://www.ftb.ca.gov/help/contact/chat.html
Main Website: https://www.ftb.ca.gov/

If you need more help on filing your California LLC taxes, you can watch this video.

If you want to form your California LLC, then watch LLC University’s step-by-step video course.

Matt Horwitz
Founder & Educator, LLC University®
Forming an LLC shouldn't be so complicated. Our step-by-step guide will make the process a breeze – and no complex legal jargon! LLC University® teaches people how to form an LLC for free in all 50 states. We hope you find our free guides and resources helpful in your business journey.
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