California $800 Franchise Tax & LLC Fee — Step 7 of 8
California generally requires an $800 annual LLC tax, including the first taxable year for LLCs formed or registered in 2024 or later. LLCs with $250,000 or more of California total income can also owe a separate LLC fee. This guide explains the current FTB rules, due dates, and fee schedule.
California LLCs that are doing business in California or registered with the Secretary of State generally pay an $800 annual LLC tax to the Franchise Tax Board. For LLCs formed or registered in 2024 or later, that tax generally applies in the first taxable year because the temporary AB 85 first-year exemption ended after 2023. If California total income is $250,000 or more, a separate LLC fee of $900 to $11,790 can also apply. Specific exceptions exist.
- Annual LLC tax
- $800/yr*
- Year 1?
- Generally yes*
- Paid on
- FTB 3522
- LLC fee
- $0–$11,790†
- Fee form
- FTB 3536
- Agency
- FTB
- Final step
- Step 8 →
* General rule; specific FTB exceptions can apply. † The separate LLC fee is based on California total income and begins at $250,000.
The Two California Charges: Tax + Fee
California can impose two separate LLC charges, and it is important not to confuse them:
- The $800 annual LLC tax — generally required each taxable year for an LLC doing business in California or registered with the Secretary of State, subject to specific exceptions. It is paid using FTB 3522.
- The LLC fee — a separate charge that applies when California total income reaches $250,000 or more. The estimated fee is paid using FTB 3536.
An LLC below the California total-income threshold generally has only the $800 annual LLC tax. At $250,000 or more of California total income, the separate LLC fee can apply in addition to the $800 tax. The calculator below shows the basic combined amount before other taxes or exceptions.
First-year rule changed after 2023The temporary AB 85 exemption applied to qualifying LLC tax years beginning on or after January 1, 2021 and before January 1, 2024. For LLCs formed or registered in 2024 or later, the $800 annual LLC tax generally applies in the first taxable year. Specific exceptions can apply, including certain short-form cancellations and qualifying deployed-military small businesses.
$800 LLC Tax & Fee at a Glance
The most important facts from this page, summarized visually.
Annual LLC Tax & LLC Fee Calculator
Enter your expected California total income (gross receipts from California sources) to see your combined annual franchise tax and fee:
Shows the general $800 annual LLC tax plus the LLC fee based on California total income. The statutory definition of total income is more specific than ordinary gross receipts and can require California-source allocation rules. This calculator does not determine every exception, classification, or tax item. Confirm material filing decisions with FTB guidance or a qualified tax professional.
The LLC Fee Schedule
The California LLC fee uses fixed income bands. Once California total income reaches a band, the corresponding fee applies:
| California total income | LLC fee |
|---|---|
| Under $250,000 | $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 |
When Everything Is Due
Due by the 15th day of the 4th month after the beginning of the taxable year (FTB 3522). For a calendar-year LLC, this is generally April 15.
Estimated LLC fee is generally due by the 15th day of the 6th month after the beginning of the taxable year (FTB 3536).
Form 568 due dates depend on tax classification. LLCs classified as partnerships generally file by the 15th day of the 3rd month after year-end; many disregarded single-member LLCs follow the 15th day of the 4th month after the owner's tax year.
Formation timing can affect when payments arriveIf an LLC begins its first taxable year late in a calendar year, the first $800 annual tax and the next taxable year's payment can fall relatively close together. Before using a delayed or future effective date as a tax-planning strategy, confirm the filing and tax-year consequences with the California Secretary of State, FTB, or a qualified professional.
Official sources checked August 2026The $800 annual LLC tax, first-year rule, California total-income fee bands, payment timing, Form 568 timing, and suspension consequences were checked against current California Franchise Tax Board guidance. Rules can depend on tax classification and specific exceptions.
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California Franchise Tax — FAQ
Ahmad Adil is the founder of LLC School. The key California LLC tax and fee information on this page was checked against current California Franchise Tax Board guidance in August 2026. This page is educational information, not individualized tax advice.
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