Do I need an LLC?California LLC tax: the $800 annual tax and the LLC fee
Short answer. Every LLC that is doing business in California or registered with the Secretary of State owes the Franchise Tax Board an $800 annual tax, even at zero revenue. It is due on the 15th day of the fourth month after the tax year begins (April 15 for a calendar year). On top of that, an LLC with $250,000 or more of California-source total income pays a separate LLC fee of $900 to $11,790. A single-member LLC that is ignored for income tax still owes both and still files Form 568. A sole proprietor does not pay the $800 (our inference, not stated on an official page).
Informational only. Not legal or tax advice. Confirmed means read on an official government page on 2026-10-31. Estimates are shown apart and are never added to confirmed totals.
The $800 annual tax
- Amount: $800 (verified, California Tax Service Center, LLC page; also stated on Secretary of State form LLC-5 and the Secretary of State FAQ).
- Who owes it: an LLC that for at least one day in the year is doing business in California and/or registered with the California Secretary of State. A registered foreign LLC (for example a Wyoming LLC you register in California) owes it too. It does not depend on revenue.
- Due date: the 15th day of the fourth month after the beginning of the tax year (April 15 for a calendar year), paid with Form FTB 3522, not with Form 568. If a date falls on a weekend or legal holiday it moves to the next business day (the same page says so for Form 568; the calculator applies it).
- New LLC, first year: the first taxable year starts when the LLC is formed or registered, so it is a short year. For a mid-year start, this site counts the month in which the year begins as month 1: a first year that starts in November is due February 15; one that starts in January is due April 15. That counting for a mid-year start is our reading, not confirmed on an official page. The next calendar year then has its own April 15 payment, so an LLC formed late in the year can owe two $800 payments within about five months (assumption, not verified).
- First-year exemption: the official page we read lists none for a 2026 formation. The old exemption for LLCs formed in 2021 through 2023 has ended (dates from search excerpts of FTB documents, not verified).
- A newer rule, not verified: secondary sources (EY tax news, CalMatters Digital Democracy bill text) report that the 2026 budget trailer bill (signed June 2026) lowers the annual tax to $400 for the first taxable year only, when that year begins in 2027 through 2029. The official FTB LLC page we read still says $800 and does not mention it, and the official bill text (leginfo.legislature.ca.gov) and ftb.ca.gov returned access errors to our fetch tool. Later years stay $800. The calculator keeps $800 in confirmed totals and shows the $400 case only as an unverified range.
The LLC fee on California income
This is a second charge, separate from the $800. The page says: "The fee is based on total income from all sources derived from or attributable to California." It is not based on net profit; an FTB publication excerpt (not readable here) defines total income as gross income plus cost of goods sold. Source: California Tax Service Center, LLC page (verified).
| Total income from California sources | Fee |
|---|---|
| $0 to $249,999 | $0 |
| $250,000 to $499,999 | $900 |
| $500,000 to $999,999 | $2,500 |
| $1,000,000 to $4,999,999 | $6,000 |
| $5,000,000 or more | $11,790 |
The estimated fee (Form FTB 3536) was listed as due June 15, 2026 on the important-dates page; other years follow the same month and day (unverified). A disregarded single-member LLC still owes the fee. The calculator adds the fee only when your monthly revenue times 12 reaches $250,000, and it assumes all of that revenue is California-source total income, which is a simplification.
Single-member LLC: Form 568
A disregarded single-member LLC still files Form 568 (it completes only a small part), and its income and loss are reported on the owner's own return. For a single-member LLC not owned by a pass-through entity, Form 568 is due on the 15th day of the fourth month after the year closes (April 15 for a calendar year). The 3rd-month date (March 15) applies only to a single-member LLC owned by a pass-through entity. Source: California Tax Service Center, LLC page (verified). The $800 and the fee are paid separately, not with Form 568.
What is different for a sole proprietor
A sole proprietor files no entity return, pays no LLC annual tax and no LLC fee (inference, not stated in so many words on an official page), and reports the business on Schedule C and the California personal return. Federal estimated tax for 2026 is due April 15, June 15, September 15 and January 15, 2027 (Form 1040-ES). California individual estimated payments fall on the same four dates (important dates, verified for 2026), but California weights them differently: 30%, 40%, 0% and 30% (weighting not verified: the official instructions were not readable), so no California payment is expected on September 15. Dates that fall on a weekend or holiday move to the next business day; the calculator computes this. This site does not compute your California income tax.
Not covered
City and county business taxes and licenses (for example in Los Angeles or San Francisco) are not covered here and are not in any total.
What this page doesn't tell you
Whether you need an LLC yet, which of these charges applies to your revenue, your own first-year dates, or what forming in Wyoming would add. The calculator takes your answers and returns a verdict, your numbers and a dated checklist you can download as a PDF and calendar file.
Sources (read 2026-10-31 unless noted)
- California Tax Service Center: Limited Liability Companies (run by the Franchise Tax Board)
- California Tax Service Center: Important dates for income tax
- California Secretary of State: business entity FAQ and form LLC-5
- IRS: estimated taxes
- Not readable by our fetch tool (HTTP 403), so not relied on for verified figures: ftb.ca.gov LLC pages and Form FTB 3522 instructions, leginfo.legislature.ca.gov bill text.
Frequently asked
Do I owe California's $800 LLC tax if my LLC made no money?
Yes. The California Tax Service Center says the LLC annual tax is $800 and applies to any LLC that, for at least one day during the year, is doing business in California and/or registered with the California Secretary of State. It does not depend on income.
When is the first $800 payment due?
The annual tax is due on the 15th day of the fourth month after the beginning of the tax year, which is April 15 for a calendar year. For an LLC formed mid-year, how the months are counted is our reading and is not confirmed on an official page: on that reading a first taxable year that starts in November is due February 15. Confirm with the Franchise Tax Board.
What is the California LLC fee on income?
A separate fee based on total income from California sources: $0 under $250,000, $900 from $250,000 to $499,999, $2,500 from $500,000 to $999,999, $6,000 from $1,000,000 to $4,999,999 and $11,790 at $5,000,000 or more. It is based on total income, not net profit.
Does a sole proprietor pay the $800 LLC tax?
No LLC annual tax applies to a sole proprietorship, which is neither an LLC nor registered as one. That is our inference: no official page we read says it in so many words. A sole proprietor still pays California income tax through the personal return and estimated payments.
Is there a first-year exemption or a reduced first-year amount?
The official page we read lists no first-year exemption for a 2026 LLC. Secondary sources report that a 2026 law cuts the first-year tax to $400 for a first taxable year beginning in 2027 through 2029; we could not read the official text, so this is not verified.
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