Each year, LLCs must pay an annual LLC franchise fee which is the greater of $800 or 1.5% of net taxable business income paid each taxable year until your LLC is dissolved, regardless of whether it is active or inactive.
Typically, the LLC franchise fee is due by April 15th every year, but for new LLCs, the first franchise fee is due by the 15th day of the fourth month after your LLC is filed. The month your LLC is filed counts as Month 1, regardless of whether you file on the first of the month or the last of the month. For example, if your LLC was filed in September, you would need to pay the fee no later than December 15th.
You can pay the fee with a few simple steps!
- Just go to California’s Franchise Tax Board website, and under ‘Business,’ select ‘Use Web Pay Business.’
- Select ‘LLC’ as entity type and enter your CA LLC entity ID.
- Once you verify your identity, select ‘Estimated Fee Payment (Form 3536)’
- Pay the annual fee for the full calendar year (1/1 to 12/31) using your business bank account.