When Is CA LLC Tax Due? Key Deadlines to Know

Limited Liability Companies (LLCs) operating within California are subject to specific state tax obligations. This overview provides clarity on the various taxes, when they are due, how they can be paid, and the consequences of late payments.

Key California LLC Taxes

California LLCs are generally subject to two primary state-level financial obligations: an annual tax and an annual fee based on gross receipts. Every LLC registered or doing business in California must pay an $800 annual tax. This flat fee applies regardless of the LLC’s income or whether it conducted any business activity during the year, remaining due until the entity is formally dissolved.

In addition to the annual tax, LLCs with total annual California gross receipts exceeding $250,000 are subject to an annual LLC fee, also known as a gross receipts tax. This fee operates on a tiered structure, increasing with higher levels of gross receipts. For instance, an LLC with gross receipts between $250,000 and $499,999 owes a fee of $900, while receipts between $500,000 and $999,999 incur a $2,500 fee. Higher tiers include a $6,000 fee for gross receipts from $1,000,000 to $4,999,999, and $11,790 for receipts of $5,000,000 or more.

California LLCs must also file Form 568, the Limited Liability Company Return of Income, summarizing their financial activities.

Tax Deadlines for California LLCs

The initial $800 annual LLC tax is due on the 15th day of the fourth month following the LLC’s registration with the California Secretary of State. For example, an LLC formed on January 10 would have its first annual tax payment due by April 10.

For all subsequent years, the $800 annual tax is due by April 15th. If April 15th falls on a weekend or holiday, the deadline shifts to the next business day. This payment is typically submitted with Form 3522, the LLC Tax Voucher.

The annual LLC fee, based on gross receipts, has a separate due date. This fee is due by the 15th day of the sixth month following the close of the taxable year. For LLCs operating on a calendar year, this deadline is June 15th. This fee requires an estimate of the LLC’s gross receipts for the year and is paid using Form 3536, Estimated Fee for LLCs.

California also requires estimated tax payments if an LLC anticipates owing a significant amount of income tax. These payments are generally due quarterly on April 15, June 15, September 15, and January 15 of the following year. California’s estimated tax payment schedule differs from federal requirements, typically requiring 30% of the annual estimated tax by April 15, 40% by June 15, 0% by September 15, and the remaining 30% by January 15 of the next year. While extensions for filing the annual return (Form 568) may be available, they do not extend the time to pay any taxes or fees owed.

How to Pay California LLC Taxes

LLCs can pay their taxes and fees online directly through the FTB’s website using their MyFTB account or the Web Pay service, which offers a free option for direct bank account payments.

Credit card payments are also an option through the FTB’s online payment system, though these transactions typically incur a processing fee charged by a third-party service provider. For those who prefer traditional methods, payments can be made by check or money order. When mailing a payment, it is crucial to include the LLC’s name, FTB ID, the tax year the payment applies to, and the appropriate payment voucher.

Electronic Funds Withdrawal (EFW) is another electronic payment method often used when e-filing tax returns. This allows the payment to be debited directly from a bank account as part of the electronic filing process.

Understanding Late Payment Implications

A late payment penalty is assessed if the annual LLC tax or the LLC fee is not paid by its due date. This penalty typically amounts to 5% of the unpaid tax or fee, with an additional 0.5% for each month, or part of a month, that the payment remains outstanding, up to a maximum of 25% of the unpaid amount over 40 months. Furthermore, underpayment of the estimated LLC fee can incur a 10% penalty on the amount not paid by the due date.

Interest is also charged on any underpayments and unpaid taxes from the original due date until the payment is received. Even if an extension to file the return is granted, interest still applies to any tax not paid by the original due date.

Continued non-compliance can lead to more severe consequences, including the suspension or forfeiture of the LLC’s powers, rights, and privileges by the Franchise Tax Board. A suspended LLC loses its legal standing, meaning it cannot legally conduct business, enter into contracts, or defend itself in court. This can expose the LLC’s owners to personal liability for business debts and obligations, effectively negating the limited liability protection. To resolve a suspension, the LLC typically must file all missing returns and pay all outstanding taxes, fees, penalties, and accrued interest.