California $800 LLC tax explained
Updated Oct 10, 2026
Short answer
A California LLC pays an $800 annual tax. The Franchise Tax Board says every LLC that is doing business in California, or organized in California, pays it. The tax stays due even if the LLC is not conducting business, until you cancel the LLC.
The first-year exemption covered only tax years that began on or after January 1, 2021, and before January 1, 2024. An LLC formed in 2026 pays the $800 in year one.
The Secretary of State also charges $70 to file Articles of Organization (Form LLC-1) and $20 for the Statement of Information (Form LLC-12). The California LLC cost page adds those to the $800. The first year is $890. Five years of the same state charges come to $4,130. A separate fee applies if the LLC makes more than $250,000. This is general information, not legal advice.
Who pays the $800
The 2026 instructions for Form FTB 3522, the LLC Tax Voucher, say the $800 is the annual LLC tax for taxable year 2026. An LLC pays it when any of these is true:
- The Secretary of State has accepted its articles of organization.
- The Secretary of State has issued it a certificate of registration.
- The LLC is doing business in California.
The same instructions say the tax is paid for each taxable year until a certificate of cancellation is filed with the Secretary of State. The Franchise Tax Board LLC page says the tax is due even if you are not conducting business.
An out-of-state LLC still pays the $800 when it does business in California or registers there. The Secretary of State charges $70 for an Application to Register (Form LLC-5). That foreign LLC also pays the $20 Statement of Information. The California cost page and the which-state tool compare forming in California with forming elsewhere and registering in California.
The 2026 voucher names two narrow exceptions. An LLC described in Internal Revenue Code sections 501(c)(2) and 501(c)(25) and California Revenue and Taxation Code sections 23701h and 23701x is exempt from the annual LLC tax for tax years beginning on or after January 1, 2003. For tax years beginning on or after January 1, 2020, and before January 1, 2030, an LLC that is a small business solely owned by a deployed member of the United States Armed Forces is not subject to the annual tax if that owner is deployed during the tax year and the LLC operates at a loss or ceases operation.
When the payment is due
The Franchise Tax Board's LLC page uses this example for the first payment. You form a new LLC and register on June 18, 2020. The annual tax is due on September 15, 2020, which the page calls the 15th day of the 4th month.
The 2026 voucher states the rule for later years. The annual LLC tax is due by the 15th day of the 4th month after the taxable year begins. For a calendar year, that voucher says to file and pay by April 15, 2026. When the due date falls on a weekend or a holiday, the deadline moves to the next business day.
The first taxable year starts when the LLC files its articles. For a foreign LLC doing business in California, it starts when the LLC is organized in the other state. If the 15th day of the 4th month of an existing foreign LLC's taxable year has already passed before it starts business in California or registers, the voucher says to pay the annual tax immediately after it starts business or registers. A late $800 brings a penalty plus interest. The form states no dollar amount for that penalty.
The first-year exemption has ended
For tax years beginning on or after January 1, 2021, and before January 1, 2024, an LLC that organized, registered, or filed with the Secretary of State did not owe the $800 for its first tax year. That window is closed. The California page on this site counts the $800 in year one.
One cancellation rule is still on the Franchise Tax Board page. If you cancel the LLC within one year of organizing, you can file Short Form Cancellation (SOS Form LLC-4/8). The Franchise Tax Board says that LLC is not subject to the $800 tax for its first tax year. The Secretary of State lists the short form in a termination packet and shows no fee for that packet.
The income fee is a second charge
The $800 tax is a flat amount. The LLC fee is separate.
The Franchise Tax Board LLC page (updated March 5, 2026) says you pay a fee if the LLC will make more than $250,000. The table on that page uses total California income, rounded to the nearest whole dollar:
| Total California income | LLC fee |
|---|---|
| $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 LLC estimates and pays that fee by the 15th day of the 6th month of the current tax year, using Estimated Fee for LLCs (FTB 3536). The page's sentence says the fee applies above $250,000. The first row of the table is $250,000 to $499,999.
LLC cost in California leaves this fee out. The $4,130 five-year total is only the flat state charges: the $70 filing, the $20 statement, and the $800 tax.
What five years of flat charges look like
This example is a California LLC formed in the middle of the year, with total California income under $250,000. The Statement of Information is due within 90 days of registration and every two years after that, so the site counts the $20 in years 1, 3, and 5.
| Year | State charges the site counts | Year total |
|---|---|---|
| 1 | Articles of Organization $70, Statement of Information $20, annual tax $800 | $890 |
| 2 | Annual tax $800 | $800 |
| 3 | Statement of Information $20, annual tax $800 | $820 |
| 4 | Annual tax $800 | $800 |
| 5 | Statement of Information $20, annual tax $800 | $820 |
Those five years add up to $4,130. The average of years 2 through 5 is $810.
The Franchise Tax Board says the Secretary of State imposes a $250 penalty if you do not file the Statement of Information, and that the Franchise Tax Board collects that penalty. The $250 is not part of the $4,130.
What to check before you file
- Open LLC cost in California and LLC cost by state. Each fee on the state page links to the official source.
- Use the which-state tool if you might form outside California and still operate there. A California registration still brings the $800.
- Pay with FTB 3522. The 2026 instructions say not to mail the voucher when you pay online or by card.
- This is general information, not legal advice.
Sources
- www.ftb.ca.gov/file/business/types/limited-liability-company/index.html
- www.ftb.ca.gov/forms/2026/2026-3522.pdf
- www.ftb.ca.gov/file/when-to-file/due-dates-business.html
- www.sos.ca.gov/business-programs/business-entities/forms/limited-liability-companies-california-domestic
- www.sos.ca.gov/business-programs/business-entities/forms/limited-liability-companies-foreign-out-state-or-out-country
General information from official sources, not legal or tax advice.