Minimum CA LLC Franchise Tax

LLCs classified as disregarded entities or as partnerships are subject to an $800 annual tax.  The tax applies if the LLC does business in California or if the SOS accepts their Articles of Organization (LLC-1) or Application for Registration as a Foreign Limited Liability Company (LLC-5). LLCs organized or registered in California are subject to the annual tax even if they conduct no business in California.

Total Income Min Tax + Add’l Fee
$0 – 249,999 $800 $0
$250,000 – 499,999 $800 $900
$500,000 – 999,999 $800 $2,500
$1,000,000 – 4,999,999 $800 $6,000
$5,000,000+ $800 $11,790

The above chart is applicable for tax years 2001 to the present

LLCs are subject to an annual fee based on their total income “from all sources derived from or attributable to California”.  LLCs must estimate and pay the annual fee by the 15th day of the 6th month, of the current tax year. If the LLCs tax year ends prior to the 15th day of the 6th month, the LLC must pay the fee by the due date for filing its Form 568, Limited Liability See Company Return of income

About the author: Steve Mangione