California's $800 LLC tax: first payment due date, the LLC fee, and the $400 first-year tax for 2027 to 2029

Every California LLC owes an $800 annual tax to the Franchise Tax Board (FTB) for each taxable year until it cancels, and the first payment is due by the 15th day of the 4th month after the LLC files with the Secretary of State. The first-year exemption covered only taxable years beginning in 2021 through 2023. A 2026 budget law, SB 122, cuts the tax to $400 for an LLC's first taxable year when that year begins on or after January 1, 2027 and before January 1, 2030, according to the FTB.

Figures above were read from FTB pages, the 2025 Form 568 booklet, the 2026 Form FTB 3522 and 3536 instructions and the California Secretary of State fee page on 2026-10-17. See sources.

This page is general information, not legal or tax advice. How these rules apply depends on the facts of each LLC.

Who owes the $800 annual tax

The FTB states: "Every LLC that is doing business or organized in California must pay an annual tax of $800." The 2026 Form FTB 3522 instructions list three cases: the Secretary of State (SOS) accepted the LLC's articles of organization, the SOS issued it a certificate of registration (an LLC formed in another state), or the LLC is doing business in California.

Having no income does not remove the tax. The FTB's LLC page says: "This yearly tax will be due, even if you are not conducting business, until you cancel your LLC."

The FTB lists two narrow exceptions in the 2026 Form 3522 instructions: LLCs described in Internal Revenue Code sections 501(c)(2) and 501(c)(25), and, for taxable years beginning on or after January 1, 2020 and before January 1, 2030, a small business LLC solely owned by a deployed member of the U.S. Armed Forces that operates at a loss or ceases operation. An LLC that elects to be taxed as a corporation files a corporation return (Form 100 or Form 100S) instead of Form 568, according to the 2025 Form 568 booklet.

When the first $800 payment is due

The 2026 Form 3522 instructions say: "The first taxable year of an LLC begins when the LLC files its articles of organization with the SOS." The FTB's LLC page gives this example: an LLC registered with the SOS on June 18, 2020 owed its first annual tax on September 15, 2020, the 15th day of the 4th month. After that, the payment is due on the 15th day of the 4th month of each taxable year, which is April 15 for a calendar-year LLC. When a due date falls on a weekend or holiday, the FTB moves it to the next business day.

For a calendar-year LLC formed from October through December, the first-year payment and the next year's April 15 payment fall within a few months of each other. For example, by the same rule, articles filed in November 2026 put the first payment on February 15, 2027 and the 2027 payment on April 15, 2027 (our arithmetic).

The first year: exempt in 2021 to 2023, $800 now, $400 from 2027

Assembly Bill 85 exempted LLCs from the annual tax for their first taxable year, but only for taxable years beginning on or after January 1, 2021 and before January 1, 2024, according to the FTB's LLC page and FTB Publication 3556. An LLC whose first taxable year began in 2024, 2025 or 2026 owes the full $800 for that year.

The FTB's "What's New with Tax Forms" page (last updated 08/28/2026) lists SB 122, the 2026 budget trailer bill, and says that for taxable years beginning on or after January 1, 2027 and before January 1, 2030, the annual tax for an LLC that is required to file a return in California "is reduced from $800 to $400 for its first taxable year." The bill was chaptered on June 29, 2026 as Chapter 23, Statutes of 2026, as reported by CalMatters Digital Democracy. The reduction applies to the first taxable year only; the FTB summary does not change the $800 for later years.

The 15-day rule and short-form cancellation

The 2025 Form 568 booklet says an LLC is not required to file a return and is not subject to the annual tax and LLC fee when both of these are true: its taxable year is 15 days or less, and it did not conduct business in California during that period. FTB Publication 3556 states the same rule ("Their taxable year was 15 days or less.") and points to R&TC section 17946.

A California LLC that never did business can also file a Short Form Cancellation Certificate (SOS Form LLC-4/8) within 12 months of filing its articles. The FTB's LLC page says such an LLC "will not be subject to the annual $800 tax for its first tax year." The 2025 booklet lists the other conditions, including no debts other than tax liability and no business conducted since the articles were filed. FTB Publication 3556 adds that an LLC is not refunded annual taxes or fees already paid for that first year.

The final year and cancellation

The 2025 Form 568 booklet says that to cancel, an LLC must file a timely final Form 568 and "pay the $800 annual tax for the taxable year of the final return." It then files a Certificate of Cancellation (Form LLC-4/7) with the SOS, which also requires a domestic LLC to file a Certificate of Dissolution (Form LLC-3). The booklet says the LLC-4/7 effective date stops the tax for future years, and that filing it after the taxable year ends may require another return and another $800. The SOS lists its termination forms as no fee.

The LLC fee, separate from the $800 tax

The 2025 Form 568 booklet says: "every LLC must pay a fee if the total California annual income is equal to or greater than $250,000." Total income here is income "from all sources derived from or attributable to California" (FTB Publication 3556, citing R&TC section 17942), defined as gross income plus cost of goods sold, so it is closer to gross receipts than to profit.

The LLC estimates the fee and pays it with Form FTB 3536 by the 15th day of the 6th month of the taxable year (June 15, 2026 for calendar year 2026). Any fee still owed is due by the original due date of the return. The 2026 Form 3536 instructions set a penalty of 10% of an underpayment, which does not apply if the estimate paid on time is at least the prior year's total fee.

Statement of Information: $20 with the Secretary of State

The SOS fee page lists the LLC Statement of Information (Form LLC-12) at $20 and says it is "Due within 90 days of initial registration and every two years thereafter." The SOS filing schedule gives a six-month window that ends with the last day of the month the LLC was formed. The FTB's LLC page adds: "SOS imposes a $250 penalty if you do not file your Statement of Information." The FTB collects that penalty for the SOS.

Counting only these state charges, an LLC with under $250,000 of California income pays $800 a year plus $20 every two years, about $810 a year, the California figure used in our LLC filing fees by state table. The SOS charges $70 to file the articles of organization (Form LLC-1). A registered agent is a separate private cost; see registered agent prices compared.

Form 568 return due dates

An LLC that is not taxed as a corporation files Form 568, Limited Liability Company Return of Income. The $800 is paid separately with Form 3522, not with the return. The due date depends on how the LLC is classified.

The 2025 booklet says the automatic extension does not extend the time to pay the LLC fee. Federal filings are separate; for the federal beneficial ownership report, see FinCEN BOI report for LLCs.

What we could not confirm

• The text of R&TC sections 17941, 17942 and 17946 and of SB 122 as chaptered. The California Legislature's site (leginfo.legislature.ca.gov) returned 403 to our requests on 2026-10-17, so the statute wording above comes from FTB publications and the bill's chaptered status from CalMatters Digital Democracy.
• How the $400 first-year amount applies to an LLC formed in another state that registers in California in 2027 or later. The 2026 Form 3522 instructions say a foreign LLC's first taxable year begins when it is organized in its home state; the FTB had not published 2027 instructions as of 2026-10-17 (a request for the 2027 Form 3522 returned 404).
• Whether the $400 applies to an LLC whose short first taxable year (15 days or less, no business) was already exempt. Not addressed on the FTB pages we read.
• SB 347 (2025-2026), which FTB bill analyses describe as proposing to cut the annual tax to $200 and then $600 from 2026. We could not confirm its final status on the Legislature's site; the 2026 Form 3522 instructions show $800 for taxable year 2026.

Sources

• Annual tax, first payment date, first-year exemption window, LLC fee chart, $250 SOS penalty - FTB: Limited liability company, read 2026-10-17
• SB 122 first taxable year annual tax of $400 - FTB: What's New with Tax Forms, read 2026-10-17
• 2026 annual tax, April 15, 2026 due date, first taxable year start, exceptions - FTB: 2026 Form FTB 3522 and instructions (PDF), read 2026-10-17
• Estimated LLC fee, June 15, 2026 due date, 10% underpayment penalty - FTB: 2026 Form FTB 3536 and instructions (PDF), read 2026-10-17
• 15-day rule, LLC fee table, cancellation, short-form cancellation, Form 568 due dates - FTB: 2025 Limited Liability Company Tax Booklet, read 2026-10-17
• AB 85, 15-day exception, total income definition, first-year due date example - FTB Pub. 3556: Limited Liability Company Filing Information, read 2026-10-17
• Form 568 due dates and extended due dates by classification - FTB: Due dates for businesses, read 2026-10-17
• SB 347 proposed annual tax amounts - FTB bill analysis, SB 347 as amended January 15, 2026 (PDF), read 2026-10-17
• $70 articles of organization, $20 Statement of Information, no-fee termination forms - California Secretary of State: Limited Liability Companies - California, read 2026-10-17
• Statement of Information filing windows - California Secretary of State: Statements of Information, read 2026-10-17
• SB 122 chaptered June 29, 2026, Chapter 23, Statutes of 2026 (reported) - CalMatters Digital Democracy: SB 122, read 2026-10-17

Source links are not affiliate links. This page is general information, not legal, tax or financial advice.