All LLCs in California pay $800 Annual Franchise Tax every year. You must pay by the 15th day of the 4th month from the date filed with SOS.
The first-year deadline is the 15th day of the 4th month after forming the LLC. After the first year, it is due April 15 for most LLCs. However, corporations are exempt from the $800 tax in their first year. Additionally, some new LLCs, LPs, and LLPs are exempt from the $800 tax in 2021-2023.
LLCs with gross receipts of $250,000 or more also pay an Estimated Fee based on gross receipts when filing their tax return.
To pay the Franchise Tax, use Form 3522. Payment can be made online via Web Pay. If using Web Pay, there is no need to file Form 3522.
For federal taxes, LLCs are treated as partnerships, corporations, or disregarded entities. The respective forms are Form 1040, 1065, or 1120 for these entities.
If the $800 payment is not made, the FTB charges penalties, and suspends the LLC. The $800 fee applies until the LLC is dissolved and is not tax deductible.