California is the largest state economy in the U.S. and one of the most popular states for forming an LLC. But California LLCs face a unique set of tax obligations that many business owners underestimate. Unlike some states that simply tax net income, California layers multiple taxes and fees on top of each other. Here is everything you need to know.
The $800 Minimum Franchise Tax
Every LLC registered in California must pay an $800 annual franchise tax to the Franchise Tax Board (FTB). This is a flat fee that applies regardless of whether your LLC earned any income during the year. It is due on the 15th day of the 4th month after your LLC's tax year begins — for calendar-year filers, that means April 15.
The only exception: LLCs formed after January 1, 2021 are exempt from the $800 franchise tax for their first taxable year. Starting in year two, you owe it no matter what. You pay this using Form 3522 (LLC Tax Voucher).
The California LLC Fee (Based on Gross Revenue)
In addition to the franchise tax, California imposes an annual LLC fee on LLCs with total income from California sources of $250,000 or more. This fee is based on gross revenue, not net profit, which catches many business owners off guard.
- $250,000 – $499,999: $900 fee
- $500,000 – $999,999: $2,500 fee
- $1,000,000 – $4,999,999: $6,000 fee
- $5,000,000 and above: $11,790 fee
This fee is reported and paid on Form 568 (Limited Liability Company Return of Income), which is due on the 15th day of the 3rd month after the close of your tax year — March 15 for calendar-year filers. You must also estimate this fee and prepay it by June 15 of the current tax year using Form 3536.
Form 568: LLC Return of Income
Form 568 is California's LLC tax return. Every LLC doing business in California or registered with the Secretary of State must file it. Single-member LLCs, multi-member LLCs, and LLCs taxed as partnerships all use this form. It reports total income, deductions, the LLC fee calculation, and member information.
The filing deadline is March 15 for calendar-year filers. You can request a 7-month extension (to October 15) by filing Form 568, but any tax owed is still due by March 15.
Statement of Information (Form LLC-12)
California requires every LLC to file a Statement of Information (Form LLC-12) with the Secretary of State every two years. The initial filing is due within 90 days of your LLC's formation. Subsequent filings are due biennially during your filing period. The filing fee is $20.
Failure to file results in penalties and can eventually lead to the suspension or cancellation of your LLC. This is not a tax form — it is a corporate compliance filing — but it is mandatory and often overlooked.
Sales and Use Tax
If your California LLC sells taxable goods or certain services, you must collect and remit sales tax to the California Department of Tax and Fee Administration (CDTFA). California's base sales tax rate is 7.25%, but local add-ons can push the total rate above 10% in some jurisdictions.
You must register for a seller's permit with the CDTFA and file sales tax returns on a monthly, quarterly, or annual basis depending on your volume. Returns are typically due on the last day of the month following the reporting period.
Employer Obligations: SDI, UI, and ETT
If your California LLC has employees, you have additional tax obligations through the Employment Development Department (EDD):
- State Disability Insurance (SDI): Withheld from employee wages at a rate set annually (1.1% in 2026). Reported quarterly on Form DE 9.
- Unemployment Insurance (UI) Tax: Employer-paid tax on the first $7,000 of each employee's wages. Rates vary by employer experience. Filed quarterly.
- Employment Training Tax (ETT): A small employer-paid tax (0.1%) on the first $7,000 of each employee's wages.
- Personal Income Tax (PIT) Withholding: You must withhold California state income tax from employee wages based on the employee's DE 4 form.
All employer payroll taxes are reported quarterly on Form DE 9 and DE 9C, due on the last day of the month following the end of each quarter (April 30, July 31, October 31, January 31).
Summary: California LLC Tax Calendar
Here is a quick reference for the major California LLC deadlines:
- March 15: Form 568 due (LLC Return of Income)
- April 15: $800 franchise tax due (Form 3522)
- June 15: Estimated LLC fee prepayment (Form 3536)
- Every 2 years: Statement of Information (LLC-12, $20 fee)
- Quarterly: Employer payroll tax returns (DE 9/DE 9C) if applicable
- Monthly/Quarterly: Sales tax returns if applicable
Track Every California Deadline Automatically
California LLCs have more tax deadlines than businesses in most other states. Between the franchise tax, LLC fee, Form 568, Statement of Information, sales tax, and employer payroll taxes, it is easy to miss something and face penalties. BizTaxIntel tracks every California deadline for your specific entity type and sends you reminders at 30, 14, 7, and 3 days before each one.
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