California LLC $800 Tax: Due Dates, First Year, How to Stop

Who pays the $800 annual tax

Every LLC that is doing business or organized in California must pay an annual tax of $800. A lack of business activity or profit doesn't by itself eliminate it; the exemptions and the final-return and cancellation rules discussed below determine when it stops. FTB: Limited liability company

It applies to single-member LLCs that are disregarded for federal purposes and to LLCs taxed as partnerships. An LLC that elected to be taxed as a corporation follows the corporate franchise tax rules instead.

Due dates and a first-year example

FTB: Business due dates FTB: LLC

The first-payment rule above is for a newly formed California LLC. An existing out-of-state LLC that registers or starts doing business in California after the 15th day of the 4th month of its tax year pays the annual tax by the earlier of the date it starts doing business here or the date it registers with the Secretary of State. FTB Pub. 3556

The first-year exemption has ended

LLCs organized for tax years beginning on or after January 1, 2021, and before January 1, 2024, didn't owe the $800 for their first year. That window has closed, so an LLC formed today generally owes the annual tax for its first year. FTB

Example: an LLC formed in June

Illustration for a calendar-year, single-member LLC owned by an individual. The FTB's own example: an LLC registered on June 18 owes its first annual tax by September 15 of the same year. FTB

So a new LLC can pay $800 twice within about seven months. If a due date falls on a weekend or holiday, it generally moves to the next business day. Plan for both payments when you budget the first year. Payments can be made online with a bank account or credit card, or by mail.

The LLC fee starting at $250,000

On top of the $800, an LLC with California income of $250,000 or more owes an annual LLC fee based on that income. The fee is estimated and paid by the 15th day of the 6th month of the tax year on Form 3536. FTB: LLC

"Total income" for the fee is defined by the FTB and isn't the same as net profit, so a business with thin margins can still owe it. Late or underpaid fees carry penalties and interest.

Form 568 and extensions

An LLC within this article's scope generally files Form 568, Limited Liability Company Return of Income, if it is organized or registered in California or doing business here, subject to applicable exceptions. It is due by the original due date in the table above. A single-member LLC owned by an individual files it by April 15 for a calendar year, with an extended due date of October 15; an LLC taxed as a partnership files by March 15, extended to October 15. FTB: Business due dates

An extension gives more time to file, not to pay, and it doesn't move the earlier deadlines for the annual tax or the estimated fee. Use the right voucher for each payment:

FTB 3537 itself says not to use it for the annual LLC tax or fee. If you pay electronically, for example with Web Pay, you don't mail the paper voucher. FTB 3537

Separately, the Secretary of State requires a Statement of Information. It isn't part of Form 568 or the annual tax, and missing it brings a $250 penalty, collected by the FTB. FTB

The federal return is separate: a single-member LLC's income usually goes on the owner's Form 1040 (Schedule C or E), and a multi-member LLC files Form 1065. We prepare both as part of our business tax services.

The 15-day rule

An LLC with a taxable year of 15 days or less doesn't have to file a return or pay the $800 for that short year if it did no business in California during it. That short period isn't treated as the first taxable year; the first taxable year starts the following year. FTB Tax News, November 2024

In practice: an LLC organized on December 20 that does no business before December 31 starts its first taxable year on January 1. If the LLC conducts business during that period, the exception doesn't apply; having no revenue isn't the same as doing no business.

Wyoming, Delaware and other out-of-state LLCs

Forming the LLC in another state doesn't avoid the California tax if the LLC is doing business in California. The FTB treats you as doing business here if, among other things, you engage in transactions for financial gain in California, your commercial domicile is here, or your California sales, property or payroll exceed set thresholds. For 2025 the thresholds were $757,070 of sales or $75,707 of property or payroll, or 25% of the respective total. FTB: Doing business in California

A Californian who runs a Wyoming LLC from Roseville is usually doing business in California through the commercial-domicile and transactions tests, even with no California sales. Such an LLC typically owes the $800 and also pays fees in the state where it was formed. For foreign owners of U.S. LLCs, the federal side is covered in our article on Form 5472.

How to stop paying the $800

Closing the bank account or stopping work doesn't by itself end the filing and tax obligations.

• Final return and cancellation: an LLC isn't subject to the annual tax for years after its final taxable year if it files a timely final California return, pays the $800 for that final year, does no business in California after that year ends and files the cancellation (Form LLC-4/7) with the Secretary of State within 12 months after filing the final return. FTB Pub. 3556
• Short-form cancellation in the first year: a California-formed LLC can use Form LLC-4/8 within 12 months of filing its Articles of Organization only if all of the form's conditions are met, including that it has conducted no business since formation, along with the form's requirements on liabilities, final tax returns, approval and investor payments. Closing an operating LLC within its first year doesn't qualify. SOS Form LLC-4/8
• Before forming: if you don't need liability protection yet, a sole proprietorship doesn't owe the LLC annual tax. Weigh that against the legal protection an LLC gives.

Cancellation doesn't erase unpaid tax, penalties or missing returns from earlier years. Dormancy, lack of profit or formation in another state doesn't by itself eliminate the tax; relief requires an applicable statutory exception, such as the rules for certain deployed military owners, or proper termination of the California filing obligation.

Checklist

• Note the date your Articles of Organization were filed and calculate the first Form 3522 due date.
• Calendar the annual tax and Form 568 separately: for a calendar-year LLC the annual tax is generally due April 15, while the return deadline depends on its classification and owner type.
• If California income may reach $250,000, estimate the LLC fee and pay Form 3536 by the 15th day of the 6th month.
• File the Secretary of State Statement of Information on time.
• If the LLC is formed in another state but run from California, review whether it is doing business here.
• If you are closing the LLC, file a timely final Form 568 and the Secretary of State cancellation within 12 months after it, instead of just stopping activity.

Running an LLC from the Sacramento area? See our Roseville page.

FAQ

When is the California LLC $800 tax due?

For a newly formed California LLC, the first payment is generally due by the 15th day of the 4th month after it files with the Secretary of State. Later payments are due by the 15th day of the 4th month of each tax year, April 15 for a calendar-year LLC, paid with Form 3522. Existing out-of-state LLCs that register or begin doing business in California can have a different first-payment deadline.

Do I pay the $800 in the first year?

Generally yes. The first-year exemption applied only to LLCs organized for tax years beginning in 2021 through 2023. A new LLC now generally pays $800 for its first year, unless the 15-day rule applies or it qualifies for short-form cancellation within 12 months, which requires, among other conditions, that it has conducted no business since formation.

Do I have to pay the $800 if my LLC made no money?

Generally yes. Having no revenue, profit or current activity doesn't by itself exempt an LLC organized or registered in California, or doing business here, from the $800 annual tax. Specific exceptions may apply, and completing the final-return and cancellation requirements can prevent the tax for later years.

What is the California LLC fee?

It is a separate annual fee for LLCs with total California income, as defined by the FTB, of $250,000 or more: $900, $2,500, $6,000 or $11,790 depending on income. It is estimated and paid by the 15th day of the 6th month of the tax year on Form 3536.

Can I avoid the $800 by forming my LLC in Wyoming or Delaware?

Not if the LLC is doing business in California. An out-of-state LLC run from California, or with California sales, property or payroll above the FTB thresholds, generally owes the $800 too, in addition to its home state's fees.

How do I stop the $800 tax?

File a timely final Form 568, pay the $800 for that final year, stop doing business in California after it and file the cancellation with the Secretary of State within 12 months after the final return. If those conditions are met, the LLC isn't subject to the annual tax for later years.

What is the 15-day rule for California LLCs?

An LLC whose first taxable year is 15 days or less and that did no business in California during that period doesn't file a return or pay the $800 for that short year. Its first taxable year then starts the following year.