California LLC Tax Filing: Forms & Deadlines (2026)

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

A California LLC is taxed as a pass-through by default - a single-member LLC is a disregarded entity and a multi-member LLC is a partnership - so profits flow to the members' returns. On top of that, the LLC owes California's $800 annual tax (Form 3522), an income-based LLC fee (Form 3536) if California income reaches $250,000, and files Form 568 with the Franchise Tax Board. Form 568 is due the 15th day of the 4th month after the tax year (April 15 for calendar-year filers).

How a California LLC Is Taxed Federally

An LLC is not a federal tax classification of its own; the IRS taxes it based on its number of owners and any election. By default, a single-member LLC is a disregarded entity, meaning the owner reports business income on their personal return (typically Schedule C of Form 1040). A multi-member LLC is taxed as a partnership, filing Form 1065 and issuing Schedule K-1s to members. In both cases the LLC itself generally pays no federal income tax - profits "pass through" to the owners. An LLC can instead elect to be taxed as a corporation (Form 8832) or, more commonly, as an S corporation (Form 2553). For the federal mechanics, see how to file business taxes and single-member LLC.

California's Three State-Level Obligations

California layers three separate obligations on top of the federal treatment: the flat $800 annual tax, the income-based LLC fee, and the annual LLC return (Form 568). These go to the Franchise Tax Board (FTB). California generally conforms to the federal pass-through treatment for how profits are taxed to members, but it does not waive the entity-level tax - even a pass-through LLC that owes no entity income tax still owes the $800 minimum tax. Keeping these straight is the core of California LLC tax filing.

The $800 Annual Tax (Form 3522)

Every LLC organized, registered, or doing business in California owes an $800 minimum annual tax, paid with FTB Form 3522. It is owed regardless of income or activity. For an existing LLC, the annual tax is due by the 15th day of the 4th month of the tax year (April 15 for a calendar-year LLC). For a newly formed LLC, the first $800 payment is due by the 15th day of the 4th month after formation. The Assembly Bill 85 first-year exemption applied only to LLCs formed in 2021 through 2023 and has expired, so LLCs formed on or after January 1, 2024 owe the $800 tax in their first year. See the California LLC cost guide for how this fits the overall budget.

The Income-Based LLC Fee (Form 3536)

If the LLC's total California income reaches $250,000 in a year, it owes an additional graduated LLC fee on top of the $800 tax. The estimated fee is paid during the year with Form 3536 and reconciled on Form 568. For 2026 the tiers are:

The estimated LLC fee is generally due by the 15th day of the 6th month of the tax year. Because it is based on total income rather than profit, plan for it during the year to avoid an underpayment penalty.

Form 568: The LLC Return of Income

The main California return for an LLC classified as a partnership or disregarded entity is Form 568, Limited Liability Company Return of Income. Form 568 reports the LLC's income, reconciles the $800 tax and any LLC fee, and, for multi-member LLCs, allocates income among members. For a calendar-year LLC, Form 568 is due the 15th day of the 4th month after the close of the tax year - April 15. California grants an automatic filing extension (generally to the 15th day of the 10th month), but an extension to file is not an extension to pay - the $800 tax and any fee are still due on the original date.

Electing S-Corp Treatment in California

An LLC can elect to be taxed as an S corporation federally by filing IRS Form 2553 (see Form 2553 explained). California recognizes the federal S election, but it imposes a 1.5% franchise tax on the S corporation's California net income, with the same $800 minimum, and the entity files Form 100S instead of Form 568. Electing S-corp status can reduce self-employment tax on distributions above a reasonable salary, but it adds payroll and a separate California return, so weigh the added cost against the savings. See LLC or S-corp for the trade-off.

Sales Tax and Payroll Tax

Two other taxes can apply depending on what the LLC does. If it sells taxable tangible goods, it must hold a seller's permit from the CDTFA and collect, report, and remit sales and use tax - this is separate from the income tax and the $800 tax. If the LLC has employees, it registers with the Employment Development Department (EDD) for California payroll taxes and withholds and remits accordingly. Sales tax registration is covered in business license in California.

How Members Are Taxed on Profits

Because a default LLC is a pass-through, the members - not the LLC - pay income tax on the LLC's profits. Members report their share on their federal Form 1040 and their California personal income tax return, and active members generally owe self-employment tax federally on their earnings. Members typically make quarterly estimated tax payments to both the IRS and the FTB because no employer withholds on pass-through income. This member-level income tax is separate from, and in addition to, the entity-level $800 tax and LLC fee. For deadlines across the year, see when business taxes are due.

Frequently Asked Questions

How is a California LLC taxed?

By federal default, a single-member LLC is a disregarded entity and a multi-member LLC is a partnership, so profits pass through to members. California adds an $800 annual tax and an income-based LLC fee, and the LLC files Form 568 with the Franchise Tax Board.

What tax forms does a California LLC file?

Form 568 with the FTB, the $800 tax with Form 3522, and any LLC fee with Form 3536. Federally it files based on classification - Schedule C, Form 1065, or Form 1120-S.

When is California Form 568 due?

For a calendar-year LLC, the 15th day of the 4th month after year-end - April 15. The $800 tax (Form 3522) is due the 15th day of the 4th month of the tax year.

Can a California LLC elect S-corp taxation?

Yes, by filing IRS Form 2553. California follows the S election but charges a 1.5% franchise tax (min $800) and the entity files Form 100S instead of Form 568.

Does a California LLC collect sales tax?

If it sells taxable goods, it must hold a CDTFA seller's permit and collect, report, and remit sales and use tax - separate from income tax and the $800 tax.

Related

• Business tax (hub)
• How to form an LLC in California
• California LLC cost
• California annual report (Statement of Information)
• S-corp vs LLC
• Form 2553 explained
• Self-employment tax
• Quarterly estimated taxes

Sources

1. California Franchise Tax Board - Limited Liability Company ($800 annual tax; Form 568; due dates).
2. California Franchise Tax Board - FTB Pub. 3556, LLC Filing Information (annual tax; LLC fee; Form 3522; Form 3536; Form 568).
3. California Franchise Tax Board - S Corporations (1.5% franchise tax; $800 minimum; Form 100S).
4. California Franchise Tax Board - Pay (Web Pay for businesses) (Form 3522 and Form 3536 payments).
5. California Legislative Information - Rev. & Tax. Code § 17941 ($800 annual tax).
6. California Legislative Information - Rev. & Tax. Code § 17942 (income-based LLC fee).
7. California Department of Tax and Fee Administration - Sales & Use Tax (seller's permit; collection and remittance).
8. California Employment Development Department - Payroll Taxes (employer registration and withholding).
9. IRS - Limited Liability Company (LLC) (default classification).
10. IRS - Single Member Limited Liability Companies (disregarded entity).
11. IRS - About Form 2553 (S-corporation election).
12. IRS - About Form 1065 (partnership return).
13. IRS - Self-Employment Tax (member-level SE tax).

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. This page is general information, not legal or tax advice. Tax rates, thresholds, and deadlines change; verify current requirements with the California Franchise Tax Board and the IRS before acting.