How to Pay the $800 California LLC Fee
Simplify managing your California LLC's annual $800 fee. Learn how to ensure timely payment and maintain good standing with state requirements.
The California $800 LLC fee is an annual payment for most Limited Liability Companies (LLCs) operating in the state. Understanding this fee and its payment process is important for maintaining good standing and avoiding penalties. This guide provides an overview of the fee, steps for payment, and potential consequences of non-compliance.
Understanding the California LLC Annual Fee
The $800 annual fee, often referred to as the annual tax or franchise tax, is a fixed charge levied on all LLCs registered with the California Secretary of State or doing business within California. This includes both domestic LLCs formed in California and foreign LLCs registered to operate there. The primary purpose of this fee is to generate revenue for state services, contributing to California’s operational budget.
This fee applies universally, regardless of the LLC’s income or activity level; even inactive LLCs are subject to the $800 annual fee until formally dissolved. The standard due date for the annual fee is the 15th day of the fourth month after the beginning of the LLC’s tax year. For newly formed LLCs, the first payment is due by the 15th day of the fourth month following the date their Articles of Organization were filed. Subsequently, for most LLCs operating on a calendar year, the fee is due by April 15th annually.
Preparing for Payment
Gathering specific information ensures a smooth transaction before paying your California LLC’s annual fee. You will need your LLC’s California Secretary of State (SOS) Entity Number, a 12-digit identification number assigned upon registration. This number is typically found on your LLC’s formation documents or can be retrieved through the California Secretary of State’s business search tool.
Your Federal Employer Identification Number (FEIN) or Social Security Number (for single-member LLCs without an FEIN) will be required. Access to your Franchise Tax Board (FTB) online account is beneficial for electronic payment and managing tax obligations. Having these details readily available helps prevent delays and ensures accurate processing of your payment.
Methods for Paying the Fee
The $800 California LLC fee can be paid through various methods, primarily online or via mail, directly to the Franchise Tax Board (FTB). Online payment through the FTB’s Web Pay service is the most common method. When using Web Pay, select “Limited Liability Company (LLC)” as the entity type and enter your LLC’s 12-digit SOS Entity ID number.
This online portal allows payments directly from a bank account, free of charge. Credit card payments are also an option through the FTB website, though they may incur a convenience fee charged by a third-party processor.
To pay by mail, complete and submit Form FTB 3522, “Limited Liability Company Tax Voucher.” This form requires your LLC’s name, SOS file number, FEIN, and the payment amount. The completed Form FTB 3522, along with a check or money order made payable to the “Franchise Tax Board,” should be mailed to the address provided on the form: Franchise Tax Board, PO Box 942857, Sacramento, CA 94257-0631.
Consequences of Non-Payment
Failure to pay the $800 California LLC annual fee by its due date can lead to repercussions. The Franchise Tax Board imposes penalties and interest charges on overdue payments. These additional costs can accumulate quickly, substantially increasing the total amount owed beyond the initial $800 fee.
Persistent non-payment can result in the suspension or forfeiture of your LLC’s legal standing. A suspended LLC loses its ability to conduct business legally within the state, including entering into contracts, maintaining lawsuits, or even defending itself in court. To regain good standing, the LLC must pay all outstanding fees, penalties, and interest, which can be a costly and time-consuming process.