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Contents. Limited liability companies (LLCs) offer attractive federal tax benefits, but LLCs operating in California must pay an $800 annual franchise tax as well as an LLC fee on gross receipts. This guide explains how California state tax on LLCs works, which exceptions apply, and how to pay.
Does my California LLC need to file Form 3522 (Limited Liability Company Tax Voucher) in the 1st year? No, since your California LLC doesnt need to pay the $800 franchise tax for its 1st year, you dont need to file Form 3522. Form 3522 will need to be filed in the 2nd year.
In general, an LLC is required to pay the $800 annual tax and file a California tax return until the appropriate paperwork is filed with the SOS to cancel the LLC. In order to cancel an LLC, the LLC must file Form LLC-4/7, Limited Liability Company Certificate of Cancellation, with SOS.
If your California LLC goes into existence on or after January 1st, 2021 (but before December 31st, 2023), there is no $800 payment due the 1st year.
The California Franchise Tax Board does not charge a first-year fee for new businesses formed in the last 15 days of the year. Therefore, a business formed at the end of December will only be responsible for one $800 payment in April.
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Except for newly incorporated or qualified corporations, all corporations doing business in California are subject to an annual minimum tax franchise tax of $800.
Northwest will form your LLC for $39 (60% discount). See details. Note: California LLCs dont have to pay $800 franchise tax for the 1st year. Every California LLC must file the Annual Franchise Tax every year.
Your California LLC has to pay annual fees to the state to remain in good standing and be able to do business in California. The fees include the following items: Statement of Information (every 2 years) Annual LLC Franchise Tax (every year)

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