How to File and Pay California's Annual LLC Fee | TaxValet — Sales Tax Done for You

Written by Alex Oxford, CMI | Jan 13, 2024 8:05:40 PM

Summary: Any LLC doing business in California that has over $250,000 in gross income attributable to California must pay an annual LLC fee. Although this tax is not technically a gross receipts tax, the amount due is based on gross income attributable to California.

For a comprehensive overview of California sales tax, including the latest rules and regulations, visit our California Sales Tax Guide. This resource provides all the information you need to ensure compliance and understand your tax obligations in the state.

California’s Annual LLC Fee

Question

Answer

Who has to file/pay California’s LLC Fee?

If your LLC meets one or more of the following conditions:

Doing business in California
Registered with the California Secretary of State

Then your LLC must pay California’s $800 annual tax plus an annual LLC fee based on gross income attributable to California.

How do you register for California’s LLC Fee?

Registration to pay California’s LLC Fee is not required. Simply complete the forms listed below and mail them in. Web payment options are available at https://ftb.ca.gov/pay.

How is California’s LLC Fee calculated?

Your annual California LLC Fee is based on your total California income rounded to the nearest whole dollar. An updated chart can be found on California’s website. This amount is in addition to California’s $800 annual tax.

California Gross Income	Annual LLC Fee
$250,000 – $499,999	$900
$500,000 – $999,999	$2,500
$1,000,000 – $4,999,999	$6,000
$5,000,000 or more	$11,790

Where is the form for California’s LLC Fee?

For California’s Annual LLC Fee(s), there are three forms you need to keep in mind:

You can pay the $800 annual tax with Limited Liability Company Tax Voucher (FTB 3522) by the 15th day of the 4th month after the beginning of the current tax year.

You can estimate and pay the LLC fee with Estimated Fee for LLCs (FTB 3536) by the 15th day of the 6th month after the beginning of the current tax year.

You can then deduct the amount of tax paid through the above forms (FTB 3536 and FTB 3522) from your California Limited Liability Company Return of Income (Form 568) from line item 7 on the first page.

When is California’s LLC Fee due?

LLCs must estimate and pay the annual fee by the 15th day of the 6th month of the current tax year (so, generally June 15th) with form FTB 3536.

However the annual $800 tax is due by the 15th day of the 4th month after the beginning of the current tax year (so typically April 15th) with form FTB 3522.

If the LLC’s 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 Company Return of Income.

Where can I go for more information on California’s LLC Fee?

You can learn more about California’s LLC Fee on FTB 3556 LLC MEO and on California’s Limited Liability Company information page.

Does TaxValet handle California’s LLC Fee?

TaxValet will not file and pay your California LLC Fee and will depend on your CPA to handle this.

Get Help with Your Gross Receipts Tax Filings

Let our team of professionals help you determine where you have nexus and file your returns with our Done-for-You Service by learning more here.

View full post