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Key Facts
- California state level: The current Secretary of State fee for domestic LLC Articles of Organization is $70.
- California state level: An LLC organized or doing business in California generally owes an $800 annual tax administered by the Franchise Tax Board.
- California state level: A separate LLC fee begins at $900 when California-attributable total income reaches $250,000 and rises through statutory tiers.
- California state level: The temporary first-year $800 waiver applied only to tax years beginning from 2021 through 2023 and is not a general current exemption.
“California LLC fee” can refer to several different charges. The one-time formation filing, recurring $800 annual tax, income-based LLC fee, Statement of Information fee, and optional service charges have different agencies, triggers, and deadlines.
The formation filing is currently $70
A domestic California LLC files Articles of Organization with the Secretary of State. Current Form LLC-1 lists a $70 filing fee and an optional $5 charge for a certified copy requested with the filing.
This Secretary of State payment is not the recurring annual tax. Expedited service, conversions, amendments, certificates, and other optional or later filings can add separate charges.
The initial Statement of Information is due within 90 days after registration and currently carries a $20 filing fee. California LLCs then file the statement every two years.
The annual LLC tax is generally $800
The California Franchise Tax Board states that an LLC organized or doing business in California generally pays an $800 annual tax. Registration in California can also trigger the tax even when the LLC was formed elsewhere.
For a calendar-year LLC, the annual tax is generally due by the 15th day of the fourth month. Form FTB 3522 is the payment voucher; Form 568 is the LLC return for entities required to use it.
The $800 obligation can continue even when the LLC is not actively conducting business, until it properly cancels. Merely abandoning the company or missing filings does not stop the charge.
The income-based fee is separate
Revenue and Taxation Code section 17942 adds an annual fee based on total income from sources derived from or attributable to California. This is not a tax on net profit and should not be estimated from profit alone.
The statutory tiers are $900 for total California income from $250,000 through $499,999; $2,500 from $500,000 through $999,999; $6,000 from $1 million through $4,999,999; and $11,790 at $5 million or more.
An LLC below $250,000 of total California income does not owe this income-based fee, but it may still owe the $800 annual tax and file Form 568. A disregarded single-member LLC is not automatically exempt.
The annual tax and fee have different payment dates
The annual $800 tax is generally paid by the 15th day of the fourth month using FTB 3522. The estimated income-based fee is generally due by the 15th day of the sixth month using FTB 3536.
The final fee is reconciled on Form 568. Underpayment, late payment, and late return rules can add penalties and interest, so a filing extension should not be assumed to extend the payment deadline.
Current exceptions are narrow
California temporarily waived the first-year $800 tax for qualifying LLCs for tax years beginning on or after January 1, 2021, and before January 1, 2024. An LLC formed in a current year should not rely on that expired window.
A qualifying LLC that files short-form cancellation within the statutory period can avoid first-year annual tax under the cancellation rules. Another narrow exception can apply when the tax year is 15 days or fewer and the LLC conducted no California business during that period.
Certain organizations exempt under specified California tax provisions can also be outside the annual LLC tax. Each exception has conditions and should be matched to current FTB instructions.
Tax classification does not erase California charges
A single-member LLC may be disregarded for federal income-tax purposes but still owes California LLC tax, fee, and Form 568 obligations. Multi-member LLCs commonly file as partnerships unless they elect corporate classification.
An LLC taxed as a corporation follows the applicable corporate return regime, so the correct California forms depend on tax classification. State formation through the formation filing does not by itself select every tax treatment.
Budget by agency and due date
A useful California LLC cost schedule separates Secretary of State formation and statement fees from FTB annual tax, income-based fee, return obligations, and any optional services. It should also identify local licenses, payroll accounts, sales-tax permits, and professional approvals that apply to the actual activity.
Verify current forms and rates before payment. Filing fees can change, while the LLC fee requires a California sourcing calculation that may be more complex than gross receipts shown in ordinary bookkeeping.
