Educational Resource — June 2026 California tax law changes frequently. Always verify current rates and deadlines with the California Franchise Tax Board (ftb.ca.gov) or a qualified California tax professional.

California LLC Tax Overview

California LLCs face two separate state-level tax obligations — and both apply regardless of whether the LLC made any money:

  • $800 Minimum Franchise Tax: A flat fee charged annually simply for the privilege of being an LLC in California. Due in the 4th month of your tax year (April 15 for calendar-year LLCs).
  • California LLC Fee: An additional fee based on total California gross receipts, charged if your LLC earns more than $250,000 in a year. This is in addition to the $800 minimum tax.

LLC members also pay California personal income tax (1%–13.3%) on their share of LLC income, reported on their personal California Form 540 return.

The $800 Minimum Franchise Tax

The California minimum franchise tax of $800 is charged to every LLC registered or qualified to do business in California, with one key exception (see first-year rule below).

  • Amount: $800 flat fee
  • Who pays: Every California LLC, including foreign LLCs registered to do business in California
  • When: Due by the 15th day of the 4th month of the LLC's taxable year (April 15 for calendar-year LLCs)
  • Even with no income: Yes — the $800 is owed even if the LLC had zero revenue
  • Payment method: FTB Web Pay, check, or money order payable to Franchise Tax Board

First-Year LLC Tax Exemption

Starting with LLCs formed on or after January 1, 2021, California exempts new LLCs from the $800 minimum franchise tax in their first taxable year. This applies to:

  • Domestic LLCs (formed in California)
  • Foreign LLCs (formed elsewhere) registering to do business in California for the first time

After the first year, the $800 fee applies every year regardless of income — even if you have zero revenue.

First-Year Exception

The first-year exemption only applies to the $800 minimum tax. If your LLC's California gross receipts exceed $250,000 in the first year, you still owe the California LLC fee (the income-based portion) even in year one.

The California LLC Fee (Based on Revenue)

In addition to the $800 minimum tax, California charges an additional LLC fee based on your LLC's total California gross receipts:

California Gross Receipts Additional LLC Fee
Less than $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

These fees are in addition to the $800 minimum tax. A California LLC with $1.5M in gross receipts pays $800 + $6,000 = $6,800 to California before any income tax.

Form 568: LLC Return of Income Deadline

Most California LLCs must file Form 568 (Limited Liability Company Return of Income) with the California Franchise Tax Board each year.

  • Standard deadline: 15th day of the 4th month after the close of the tax year (April 15 for calendar-year LLCs)
  • Extension: California automatically grants a 6-month extension — no extension request required if you pay at least the $800 by the original due date. The extended deadline is October 15.
  • Where to file: File electronically via FTB's CalFile or through a tax software that supports California returns

Estimated Tax Payments

California LLCs that expect to owe $500 or more in California tax may be required to make estimated tax payments. For LLCs with income, estimated payments are typically due in April and June of the current year, and January and March of the following year.

Penalties for Missing California LLC Deadlines

  • Late payment of $800 tax: 5% penalty per month on unpaid amount, plus interest
  • Late filing of Form 568: $18 per month, per owner, up to 12 months
  • Failure to pay LLC fee: Similar monthly penalties plus interest
  • Loss of good standing: Failure to pay can result in suspension of your LLC

Official Sources

Frequently Asked Questions

California LLC Tax FAQs

The $800 minimum California LLC franchise tax is due on the 15th day of the 4th month of your LLC's taxable year. For a calendar-year LLC (most LLCs), that's April 15. For the first year, it's due the 15th day of the 4th month after you formed the LLC (if formed after the first day of the 4th month of the taxable year).
It depends on when your LLC was formed. California LLCs formed on or after January 1, 2021 are exempt from the $800 minimum franchise tax in their first taxable year. This exemption only applies to the first year — the $800 fee applies every year after that, even if the LLC has no income.
Form 568 (Limited Liability Company Return of Income) is California's LLC tax return. Most LLCs classified as disregarded entities or partnerships file Form 568 annually with the California Franchise Tax Board (FTB). It reports the LLC's income, expenses, and confirms the $800 minimum tax (or additional LLC fee if gross receipts exceed $250,000).
California charges an additional "LLC fee" (on top of the $800 minimum tax) based on total California gross receipts: $900 for $250,000–$499,999; $2,500 for $500,000–$999,999; $6,000 for $1,000,000–$4,999,999; $11,790 for $5,000,000 or more. These are in addition to the $800 minimum tax.
The LLC itself does not pay California income tax — instead, income passes through to members. Members pay California personal income tax (1%–13.3%) on their share of LLC income reported on their personal California tax return. The $800 franchise tax and the LLC fee are separate from this income tax.

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