Overview
If your California LLC has not elected to be taxed as an S Corporation, it’s considered a Single-Member LLC (SMLLC) for tax purposes. Each year, SMLLCs must pay two separate amounts to the California Franchise Tax Board (FTB):
- Annual Tax: a flat $800 payment and
- LLC Fee: an additional fee based on total annual gross receipts from all sources derived from or attributable to California
If your business exists in California, you will generally owe at least $800 each year until your LLC is formally dissolved, even if your business is inactive or reports no income.
Due Dates
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Annual Tax (Form 3522): Due by the 15th day of the 4th month after your LLC was filed (for most, that’s April 15 each year)
- Example: If your LLC was filed in September, your first $800 payment is due by December 15.
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LLC Fee (Form 3536): Based on your estimated gross receipts and due by the 15th day of the 6th month of the current tax year (typically June 15).
LLC Fee Schedule
Note: The California LLC fee is based on your total California gross receipts, not your net income or profit. This means it’s calculated on your business’s total revenue from California sources before expenses. For more information, visit the FTB LLC Annual Tax and Fee Overview here.
How to Pay
- Go to the California Franchise Tax Board website
- Under “Business,” select Use Web Pay for Businesses
- Choose LLC as your entity type and enter your CA LLC Entity ID
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For your payment type, select:
- Form 3522 – LLC Tax Voucher to pay the $800 annual tax, or
- Form 3536 – Estimated Fee Payment to pay the LLC fee
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Pay using your business bank account for the full tax year (January 1 – December 31)
Business-related taxes and fees, such as the California Annual Tax and LLC Fee, are generally deductible business expenses on your federal tax return. Be sure to keep proof of payment for your records and share it with your tax preparer.
Recording your payment to your Collective Dashboard
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Submit your estimated tax payment to your Collective Dashboard
- From the Quarterly Estimates section of your Collective account
- Select “Record payment”
- Enter the tax type, amount, payment date, quarter, and tax year
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Upload your payment receipt
Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as legal, financial, or tax advice. It is not intended to be a substitute for obtaining legal, accounting, or other financial advice from an appropriate and/or licensed adviser, or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.