How Do I Create an LLC in California?

California LLC Fees and Filing

  • All LLCs operating in California are liable to the $800 annual fee. Payment is expected by the fifteenth day of the fourth month after your LLC’s fiscal year finishes. The deadline moves to the next working day if it falls on a weekend or holiday. You may use the official fee calculator on the FTB site to get the exact $800 cost.

  • The filing fee is $20 when you submit your Statement of Information within 90 days after approval of your LLC. Download the form and mail it with the fee.

  • People forming a limited liability company or partnership in California from 2021 through 2023 won’t pay the $800 minimum business tax the first year. The waiver applies only to those formed during that period.

California LLC Taxation

  • LLCs file the Limited Liability Company Return of Income form to pay franchise tax. The $800 is paid for all years the LLC operates, even if open just part of the year. LLCs can make payments up to a year in advance using Web Pay for Businesses.

  • The IRS treats single-member LLCs as sole proprietorships for tax purposes. So the LLC itself does not pay taxes or file a return with the IRS.

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