What is the Annual Fee for an LLC in California?

California LLCs must pay an $800 annual franchise tax minimum, due April 15 each year under Cal. Rev. & Tax. Code § 17941. LLCs with gross California-source income exceeding $250,000 pay additional tiered gross receipts fees ranging from $900 to $11,790. Additionally, you must file a biennial Statement of Information (Form LLC-12) for $20 every two years within 90 days of your filing month (Cal. Corp. Code § 17702.01).

Franchise Tax and Gross Receipts Fees

The $800 minimum franchise tax applies to all California LLCs annually, regardless of income or activity level. This is mandatory under Cal. Rev. & Tax. Code § 17942.

If your LLC generates gross California-source income above $250,000, you owe an additional gross receipts fee:

$250K–$500K: $900
$500K–$1M: $2,500
$1M–$5M: $6,000
$5M+: $11,790

Both the franchise tax and gross receipts fees are due April 15 annually to the California Franchise Tax Board (FTB). These are separate from California income tax (1%–13.3% graduated rate), which passes through to members.

Biennial Statement of Information

Separate from franchise taxes, California requires a Statement of Information (Form LLC-12) filed biennially for $20. Your first report is due within 90 days of formation; subsequent reports are due every two years during your filing month.

Missing deadlines carries serious penalties: A $250 penalty applies for late filing with no grace period. The Secretary of State may suspend or forfeit your LLC if reports remain delinquent. Reinstatement requires filing all delinquent reports, paying penalties, and requesting revival with both the SOS and FTB.

Total Annual Cost

Budget at least $800 annually for the franchise tax. Add $20 every other year for the Statement of Information. LLCs with gross receipts exceeding $250,000 pay significantly more based on tiered gross receipts thresholds.

Next Steps

File your Articles of Organization (Form LLC-1) with the California Secretary of State ($70 filing fee).
Submit your first Statement of Information within 90 days ($20).
Mark your calendar for April 15 each year to pay franchise tax and gross receipts fees to the FTB.
Track your biennial filing deadline to avoid penalties.

For tax questions, contact the California Franchise Tax Board at https://www.ftb.ca.gov/.

This is general information, not legal advice.