When to Pay Your LLC Taxes in California

Limited Liability Companies (LLCs) operating in California face specific tax obligations and deadlines. Understanding these requirements is important for compliance and avoiding penalties. California’s tax structure for LLCs includes several types of taxes, each with its own timing and payment method. This guide clarifies when and how these payments are due for LLC owners.

Annual LLC Tax Payment

All limited liability companies registered or doing business in California are subject to an annual tax. This $800 payment is a flat fee regardless of the LLC’s income or activity level. This tax applies even if the LLC is not actively conducting business, as codified under California Revenue and Taxation Code Section 17941.

For newly formed LLCs, the first annual tax payment is due by the 15th day of the fourth month after the LLC’s registration with the California Secretary of State. For instance, if an LLC is registered on June 18, its first $800 tax would be due by September 15 of the same year. Subsequent annual tax payments are due by the 15th day of the fourth month of the LLC’s taxable year, which for most calendar-year filers is April 15. Payments for this annual tax are made to the California Franchise Tax Board (FTB) using FTB Form 3522, “Limited Liability Company Tax Voucher,” or through the FTB’s online Web Pay for Businesses.

Estimated Income Tax Payments

Many LLCs, depending on their tax classification, are obligated to make estimated income tax payments to both the Internal Revenue Service (IRS) and the California Franchise Tax Board. This requirement applies to income not subject to withholding, such as earnings from self-employment or business profits. These payments ensure taxpayers meet their tax obligations throughout the year, avoiding a large year-end bill.

Both federal and state estimated tax payments follow a quarterly schedule, though periods do not align with calendar quarters. Federal estimated tax due dates are typically April 15 (for January 1 to March 31 income), June 15 (for April 1 to May 31 income), September 15 (for June 1 to August 31 income), and January 15 of the following year (for September 1 to December 31 income). If a due date falls on a weekend or holiday, the deadline shifts to the next business day. Payments to the IRS can be made online via IRS Direct Pay, the Electronic Federal Tax Payment System (EFTPS), the IRS2Go app, or by mailing Form 1040-ES vouchers.

California’s estimated tax payment deadlines to the FTB generally mirror the federal schedule. LLCs taxed as partnerships may use FTB Form 541-ES, while those taxed as sole proprietorships or disregarded entities typically use FTB Form 540-ES. Payments can be remitted online through the FTB’s Web Pay service, or by mail with a check or money order and the appropriate payment voucher. Payments can be made directly from a bank account or via credit card, though credit card payments may incur processing fees.

Sales and Use Tax Payments

Limited Liability Companies engaged in the sale of tangible personal property in California are generally required to collect and remit sales tax to the California Department of Tax and Fee Administration (CDTFA). Use tax may also be due on purchases made outside California for use within the state when sales tax was not originally paid.

The frequency of sales and use tax payments to the CDTFA depends on the volume of an LLC’s taxable sales, ranging from monthly to annually. Payments are generally due on the last day of the month following the reporting period. For instance, January sales payments are due by the last day of February. LLCs must first register for a seller’s permit with the CDTFA. Payments can be made electronically through the CDTFA’s online services or by mail, with EFT potentially required for some businesses.

Payroll Tax Payments

LLCs with employees must manage and remit federal and state payroll taxes. These include federal income tax withholding, Social Security and Medicare taxes (FICA), federal unemployment tax (FUTA), California income tax withholding, State Disability Insurance (SDI), and State Unemployment Insurance (SUI). Payment schedules vary based on tax liability and employee payment frequency.

Federal payroll tax deposit schedules are determined by the IRS as either monthly or semi-weekly, based on total tax liability. Monthly depositors remit taxes by the 15th day of the following month for prior month’s wages. Semi-weekly depositors have specific deadlines: if payroll is paid Wednesday through Friday, deposits are due the following Wednesday; if paid Saturday through Tuesday, deposits are due the following Friday. These federal deposits are made through the Electronic Federal Tax Payment System (EFTPS).

California payroll taxes are remitted to the Employment Development Department (EDD). The EDD has varying deposit schedules (weekly, monthly, or quarterly), influenced by state income tax withheld and federal deposit schedules. For instance, Unemployment Insurance (UI) and Employment Training Tax (ETT) are due quarterly by the last day of the month following the quarter’s end (e.g., April 30, July 31, October 31, January 31). State income tax withholding and SDI deposit schedules are linked to federal deposit schedules. California employers are required to file and pay employment taxes electronically through the EDD’s e-Services for Business portal.