Every LLC that is doing business in California is subject to the $800 annual tax. This includes any LLC that has articles of organization issued by the Secretary of State, as well as LLC’s that are formed in other states and have been issued a certificate of registration to do business in California.
The tax must be paid for each taxable year until a certificate of cancellation of registration or of articles of organization is filed with the SOS.
When is the Annual LLC Tax Due?
This, directly from the SOS Form 3522 Instructions:
The annual LLC tax is due and payable by the 15th day of the 4th month after the beginning of the LLC’s taxable year (fiscal year) or April 15, 2010 (calendar year).
The first taxable year of an LLC begins when the LLC files its articles of organization with the SOS. The first taxable year of a foreign LLC begins when the LLC is organized in another state.
If the 15th day of the 4th month of an existing foreign LLC’s taxable year has passed before the foreign LLC commences business in California or registers with the SOS, the annual LLC tax should be paid immediately after commencing business or registering with the SOS.
CPAs have told us that a new LLC, formed in California, has 4 months from the formation date to pay the tax. To avoid possible late fees, I’d recommend checking with your CPA and/or the FTB to make sure this is still correct.
And what if an LLC is formed in another state, and then it registers to do business in California at a later date? Here’s the example given by the FTB:
Example: LLC1, a newly-formed calendar year taxpayer, organizes as an LLC in Delaware on June 1, 2010. LLC1 registers with the SOS on August 13, 2010, and begins doing business in California on August 14, 2010. Because LLC1’s initial taxable year began on June 1, 2010, the annual LLC tax is due by September 15, 2010 (the 15th day of the 4th month of the short-period taxable year). LLC1’s short-period (June 1, 2010-December 31, 2010) tax return is due by April 15, 2011. The annual tax payment for taxable year 2011, with form FTB 3522 also is due by April 15, 2011.
More Information from the California Franchise Tax Board:
- CA Franchise Tax Board – State taxation information for LLCs.
- CA Franchise Tax Board – Forms and Schedules for LLCs.