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Newly Incorporated or Qualified Corporations Your first tax year is not subject to the minimum franchise tax. After the first year, your tax is the larger of your California net income multiplied by the appropriate tax rate or the minimum franchise tax.
Every LLC that is doing business or organized in California must pay an annual tax of $800. This yearly tax will be due, even if you are not conducting business, until you cancel your LLC. You have until the 15th day of the 4th month from the date you file with the SOS to pay your first-year annual tax.
An LLC lets you take advantage of the benefits of both the corporation and partnership business structures. LLCs protect you from personal liability in most instances, your personal assets like your vehicle, house, and savings accounts wont be at risk in case your LLC faces bankruptcy or lawsuits.
Aside from formation requirements, the main difference between a partnership and an LLC is that partners are personally liable for any business debts of the partnership -- meaning that creditors of the partnership can go after the partners personal assets -- while members (owners) of an LLC are not personally liable
Similar to an LLC, a partnership is also considered a pass-through entity. However, the key difference to be aware of for LLC vs. partnership taxes is that a partnership is considered a taxing entity by the IRS, while an LLC is not. Each year, the partnership will file a tax return but will not owe any taxes.
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Cost- Partnerships are easier and less expensive to establish and maintain than an LLC. Taxes- While both entities benefit from pass-through taxation, LLCs have more flexibility because the owners can opt to be taxed as either an LLC or an S Corporation .
Disadvantages of creating an LLC States charge an initial formation fee. Many states also impose ongoing fees, such as annual report and/or franchise tax fees. Check with your Secretary of States office. Transferable ownership. Ownership in an LLC is often harder to transfer than with a corporation.
To form an LLC in California, go to bizfileOnline.sos.ca.gov, log in, select Register a Business under the Business Entities Tile, Articles of Organization - CA LLC and follow the prompts to complete and submit.
California law generally imposes a minimum franchise tax of $800 on every corporation incorporated, qualified to transact business, or doing business in California. A corporation that incorporates or qualifies to do business in California is exempt from paying the minimum franchise tax in its first taxable year.
California LLC Fee The CA LLC fee is $85, payable to the secretary of state. In addition, a California LLC fee is also due for the statement of information, a document that must be submitted within 90 days of LLC formation and carries a filing cost of $20.

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