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California LLC Annual Fees: Everything You Need To Know In Apr. 2026
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2026 California LLC Guides
Overview
The detail step
California is an excellent place to start your Limited Liability Company (LLC), but you’re required to pay several annual fees to operate in the state. They’re collectively known as California LLC annual fees.
These are recurring filing and tax obligations that all LLCs operating in California must pay to remain compliant with the California Secretary of State and the Franchise Tax Board (FTB). Paying your FTB LLC fee ensures you’re operating lawfully according to the state reporting and tax requirements.
This article discusses the Annual LLC fees in California. I’ve discussed the filing dates and potential fines and penalties so you can keep up to date with what’s required when operating your LLC in California. I’ve included how to avoid Franchise Tax and shown you how to pay your Annual LLC fee in California.
Check my complete table below to see the common California LLC tax that must be submitted.
| Name | Fee | Due date | Filing frequency |
|---|---|---|---|
| Statement of Information | $20 | 1st time: 90 days after your LLC is approved Afterward: Before your LLC’s anniversary approval date | Every 2 years |
| Annual LLC tax | $800 | The 15th day of the 4th month after your LLC is formed | Annually |
| Estimated LLC fee | Fee varies based on gross receipts | The 15th day of the 6th month of your current taxable year | Annually |
| LLC Return of Income (Form 568, Form 100, and Form 100s) | Fee varies | LLC Return of Income (Form 568, Form 100, and Form 100s) | Annually |
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Statement Of Information
The Statement of Information is a mandatory filing containing your LLC’s current business details (Address, management, Registered Agent) to keep the California Secretary of State updated for regulatory and legal purposes.
- The filing fee is $20.
- It must be filed online through the Secretary of State’s website.
Once your LLC is approved by the state, you have 90 days to submit your first Statement of Information. Following this, you’re required to submit the statement every two years, before your LLC’s anniversary approval date (The date that your Articles of Organization were approved).
See my step-by-step guide on How To File The California LLC Statement Of Information.
California Annual LLC Tax
Every LLC registered or operating in the state of California is required to pay an Annual Tax of $800.
- The payment needs to be made using Form 3522 (LLC Tax Voucher).
- Your first Form 3522 is due on the 15th day of the 4th month after your LLC was filed with the Secretary of State.
Note: The filing timeline starts from the month your LLC was approved, not the specific date.
Once you’ve completed your initial filing, you need to submit Form 3522 by April 15 annually to keep good standing with the state.
Example: Your LLC was approved on June 10, 2025.
- June is counted as month one.
- August would be counted as month four, as it’s three months after.
- Your initial filing date would be September 15, 2025. This is the due date for your first $800 payment.
- All future payments will be due on April 15 of each year that your LLC remains in operation. This is your California LLC Annual Fee due date.
Check out my article the California LLC Annual Tax & Form 3522 Filing Guide, for more details.
1. How To Avoid Paying $1,600 In Franchise Tax
Your LLC may owe 2x $800 Franchise Tax payments within three months if your California business was formed between October and December.
- The first $800 payment is for the year your LLC was formed.
- The second $800 payment applies to the next calendar year.
Tip: Select a future filing date so that your LLC officially begins in January the following year. This means that you’ll avoid this year’s and next year’s initial filing payments.
For full instructions, refer to my guide How To Avoid The $1,600 California LLC Franchise Tax.
Estimated Fee For LLCs
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These estimated LLC fees only apply if your company earns $250,000 or more in total income during a taxable year. This is based on your gross receipts (Total revenue from all California sources).
- File your payment using Form 3536.
- The higher your LLC’s gross receipts, the higher the required fee.
With this, what is the Annual LLC fee in California? The FTB has provided a fee schedule for you to reference.
| Estimated LLC income (Rounded to the nearest whole dollar) | LLC fee |
|---|---|
| $0-$249,999 | No estimated fee |
| $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 |
1. Estimated Fee Payment Due
2. Final LLC Fee Payment And Penalty For Underpayment
3. Safe Harbor Rule
I’ve written a detailed guide on How To File Form 3536 – Estimated LLC Fee In California.
LLC Return Of Income (Form 568)
All California LLCs are required to file Form 568, also known as the LLC Return of Income, annually. It gives the state a summary of your financial activities during the taxable year. Furthermore, it contains key information regarding taxes and payments made to the FTB.
In Form 568, you must report:
- The $800 Annual Franchise Tax.
- Your estimated Fees (If applicable).
- Your LLC’s income, deductions, gains, and losses.
- Other taxes paid, including use taxes related to real estate sales.
Some LLCs may need to report on and pay the following:
- Any deficits or penalties after filing Form 3536 (As mentioned above).
- Taxes owed by any non-resident member of your LLC.
Your return filing deadline depends on your LLC’s tax classification. I’ve summarized these in a table below so you can find out which form to file and when it’s due.
| Tax classification | Form to file | Due date |
|---|---|---|
| Sole Proprietorship | Form 568 | April 15 |
| Partnership | Form 568 | March 15 |
| S-Corporation | Form 100S | March 15 |
| C-Corporation | Form 100 | March 15 |
See my complete guide on the Form 568 for more details.
Penalties For Late Filing Or Nonpayment Of LLC Annual Fees In California
Your LLC faces several state penalties if you fail to file the required forms, pay your annual taxes, or submit complete information to the FTB and/or the Secretary of State (SOS). These may include interest changes, monetary fees, and the suspension or forfeiture of your legal rights in severe cases.
You can read more details in the:
- Franchise Tax Board: Penalty reference chart.
- Franchise Tax Board: Common penalties and fees.
The table below summarizes the most common penalties for California LLCs and the related legal text.
| Penalty name | Form/Obligation | R&TC section | IRC section | Computation/Description |
|---|---|---|---|---|
| Failure to file Statement of Information | Biennial Statement of Information filed with SOS | R&TC § 19141 | Failure to file: $250 This is collected by the FTB on behalf of the SOS. | |
| Delinquent filing of LLC Return of Income | Form 568 | R&TC § 19131 | IRC § 6651(a)(1) | Charged 5% of the unpaid tax per month (This cannot exceed 25%) |
| Late payment penalty | Form 3522 (Annual LLC Tax) and Form 568 (If tax or fee due) | R&TC § 19132 | IRC § 6651(a)(2) | Charged 5% of unpaid tax + 0.5% per month (Or fraction) until paid (This cannot exceed 25%). |
| Late filing penalty (Per Member) | Form 568 | R&TC § 19172 | IRC §6698 | Charged $18 per member per month (Up to 12 months). This applies if the return is filed late. |
| Demand penalty | All returns (Form 568 or other required LLC returns) | R&TC § 19133 | Charged 25% of the total tax due, regardless of any payments or credits made on time. This is triggered when the LLC fails to respond to a Demand for Tax Return notice. | |
| Interest on unpaid tax and penalties | All LLC tax and fee balances | R&TC § 19101 | IRC § 6601 | Interest accrues daily from the due date until paid. The rate is set quarterly. |
| Entity suspension/forfeiture | Failure to pay annual tax (Form 3522) or file Form 568 | R&TC § 23301 | Your LLC’s rights and privileges may be suspended (Domestic) or forfeited (Foreign). You cannot conduct business or defend lawsuits. |
Frequently Asked Questions
Every LLC doing business or compliant under California law is required to pay the $800 Annual Franchise Tax. This is due every year, even if your LLC has no income or is inactive. This applies until your LLC is formally canceled with the state.
You have two options to pay your California LLC Annual Fee:
1. Online using MyFTB.
2. By mail using the appropriate Franchise Tax Board forms (Listed above).
Begin your dissolution process before April 15 to avoid being charged the $800 Annual Franchise Tax for the following year.
If you don’t pay your California LLC fee, you’ll be subject to the penalties and interest outlined above. You may eventually be suspended or forfeited under R&TC § 23301. This removes your right to conduct business or maintain legal standing in California.
2026 California LLC Guides
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ABOUT THE AUTHOR
+ 22 sources
Bizreport adheres to strict editorial integrity standards avoids using tertiary references. We have strict sourcing guidelines and rely on peer-reviewed studies, academic research. To ensure the accuracy of articles in Bizreport, you can read more about the editorial process here.
- Ca.gov. (2025). Home :: California Secretary of State. [online] Available at: https://www.sos.ca.gov/.
- State of California Franchise Tax Board. (2025). Franchise Tax Board | FTB.ca.gov. [online] Available at: https://www.ftb.ca.gov/.
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- Ca.gov. (2024). 2024 Limited Liability Company Tax Booklet | California Forms & Instructions 568 | FTB.ca.gov. [online] Available at: https://www.ftb.ca.gov/forms/2024/2024-568-booklet.html.
- Ca.gov. (2025). Forms and Publications | FTB.ca.gov. [online] Available at: https://www.ftb.ca.gov/forms/.
- 2025 Instructions for Form FTB 3536 General Information. (n.d.). Available at: https://www.ftb.ca.gov/forms/2025/2025-3536.pdf.
- California Franchise Tax Board. (2024) Form 568 — 2024 Limited Liability Company Return of Income. Sacramento, CA: California Franchise Tax Board. Available at: https://www.ftb.ca.gov/forms/2024/2024-568.pdf
- Ca.gov. (2025). FTB 1024: Penalty reference chart | Forms and Publications | FTB.ca.gov. [online] Available at: https://www.ftb.ca.gov/forms/misc/1024.html.
- Ca.gov. (2025). Common penalties and fees | FTB.ca.gov. [online] Available at: https://www.ftb.ca.gov/pay/penalties-and-interest/index.html.
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- Ca.gov. (2025). California Code, RTC 19131. [online] Available at: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=19131.&lawCode=RTC.
- TITLE 26-INTERNAL REVENUE CODE § 6651. (n.d.). Available at: https://www.govinfo.gov/content/pkg/USCODE-2023-title26/pdf/USCODE-2023-title26-subtitleF-chap68-subchapA-partI-sec6651.pdf.
- Ca.gov. (2025). California Code, RTC 19132. [online] Available at: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=19132.&lawCode=RTC.
- Ca.gov. (2025). California Code, RTC 19172. [online] Available at: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=19172.&lawCode=RTC.
- TITLE 26-INTERNAL REVENUE CODE § 6698. (n.d.). Available at: https://www.govinfo.gov/content/pkg/USCODE-2015-title26/pdf/USCODE-2015-title26-subtitleF-chap68-subchapB-partI-sec6698.pdf.
- Ca.gov. (2025). California Code, RTC 19133. [online] Available at: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=19133.&lawCode=RTC.
- Ca.gov. (2025). California Code, RTC 19101. [online] Available at: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=19101.&lawCode=RTC.
- TITLE 26-INTERNAL REVENUE CODE § 6601. (n.d.). Available at: https://www.govinfo.gov/content/pkg/USCODE-2011-title26/pdf/USCODE-2011-title26-subtitleF-chap67-subchapA-sec6601.pdf.
- Ca.gov. (2024). California Code, RTC 23301. [online] Available at: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=23301.&lawCode=RTC.
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