---
title: "California LLC Taxes: What You'll Actually Owe in 2026 | LLC Attorney"
description: "How California LLC taxes work in 2026: the $800 Annual Tax, the tiered LLC Gross Receipts Fee, top 13.3% income tax, sales tax, the Statement of Information, and the S-Corp election's 1.5% surcharge."
canonical: https://llcattorney.com/states/ca/llc-taxes-california
image: https://llcattorney.com/images/share-cover.png
source_path: /states/ca/llc-taxes-california
---

Key Takeaways

-   California taxes LLC pass-through income at Graduated, 1% to 12.3%, plus a 1% surcharge over $1M (effective top rate 13.3%)
-   Annual (Minimum Franchise) Tax plus the LLC Gross Receipts Fee: $800 flat, owed by every LLC regardless of income or activity, stacked with a tiered LLC Gross Receipts Fee once California-source gross receipts exceed $250,000: $900 ($250,000–$499,999), $2,500 ($500,000–$999,999), $6,000 ($1,000,000–$4,999,999), up to $11,790 (over $5,000,000), due The $800 tax is due the 15th day of the 4th month of the tax year (April 15 for calendar-year LLCs), including the LLC's first year — the first-year exemption that applied to LLCs formed 2021–2023 fully expired December 31, 2023, so any LLC formed since owes the full $800 in year one. The Gross Receipts Fee is estimated on Form 3536 (due June 15) and trued up on Form 568, the same due date as the $800 tax.
-   Sales Tax: 7.25% (6.00% state + 1.25% mandatory local uniform tax) (combined: 7.25%–10.75%, with district taxes adding 0.10%–4.00% depending on city/county (rates change periodically; several Santa Clara County cities increased rates April 1, 2026))
-   Statement of Information (Form LLC-12) due Initial filing within 90 days of formation, then every 2 years by the anniversary month, $20 fee
-   Federal self-employment tax of 15.3% applies to net LLC profit regardless of state
-   California recognizes the federal S-corp election, but layers its own distinctive entity-level tax on top: 1.5% of net income, or the $800 minimum, whichever is greater, reported on Form 100S. This is genuinely different from most states, which impose no separate S-corp surtax at all.
-   Same-day formation and compliance filing available through LLC Attorney at no markup on state fees

California has the most layered entity-level tax structure of any state in this guide: an $800 flat Annual Tax owed by every LLC regardless of profitability, a separate tiered Gross Receipts Fee that kicks in once revenue crosses $250,000, the nation's highest top personal income tax rate at 13.3%, and — if you elect S-corp status — an additional 1.5% entity-level tax on top of all of it.

This guide covers exactly what a California LLC owes in 2026 — the stacked $800 tax and Gross Receipts Fee, the meaningful difference between Secretary of State dissolution and Franchise Tax Board suspension, sales tax and payroll obligations (including uncapped SDI withholding), and the real math behind an S-Corp election once California's added surcharge is factored in.

$800Flat Annual Tax, every LLC, every year

13.3%Top state income tax rate

$11,790Max LLC Gross Receipts Fee tier

1.5%Added S-Corp entity-level tax

## California Personal Income Tax on LLC Profit

By default, a California LLC is a pass-through entity for federal purposes — the LLC itself doesn't pay federal income tax, and profit flows through to the owners' personal returns, taxed at California's graduated rates up to 13.3% at the top. But California is unusual in also taxing the LLC itself at the entity level regardless of pass-through status — see below — so a California LLC owner effectively faces three layers: federal tax, personal state income tax on their share of profit, and the LLC's own separate entity-level tax and fee.

**California's rate: Graduated, 1% to 12.3%, plus a 1% surcharge over $1M (effective top rate 13.3%)**

Nine standard brackets running from 1% to 12.3%, plus an additional 1% Behavioral Health Services Tax (formerly the Mental Health Services Tax) on taxable income over $1,000,000 — not doubled for joint filers — producing an effective top marginal rate of 13.3%, the highest of any state. The 2026 standard deduction is $5,706 (single/MFS) and $11,412 (MFJ/HOH).

This is the highest top marginal individual income tax rate in the country, and it applies in full to LLC pass-through profit — a major planning consideration for high-earning California LLC owners.

## California's Annual (Minimum Franchise) Tax plus the LLC Gross Receipts Fee

Every LLC doing business in California owes the $800 Annual Tax every year it exists, with no exemption for low income or inactivity and no first-year relief for LLCs formed after 2023. Once California-source gross receipts exceed $250,000, the separate LLC Gross Receipts Fee kicks in on top, in tiers that jump sharply rather than phasing in gradually — crossing from $499,999 to $500,000 in receipts, for example, roughly triples the fee from $900 to $2,500. Both charges apply regardless of profitability, member count, or federal tax classification (aside from the separate S-corp and C-corp rules noted above).

This is the single most important fact on this page: California stacks two separate charges on every LLC doing business in the state — a flat $800 minimum tax and, once gross receipts cross $250,000, an additional tiered fee that jumps in hard cliffs rather than scaling gradually. If an LLC elects S-corp taxation, California layers on a third, distinctive charge: a 1.5% entity-level tax on net income (or the $800 minimum, whichever is greater — not stacked on top of the $800, but replacing it with whichever figure is larger), reported on Form 100S. If an LLC elects C-corp taxation instead, it pays California's flat 8.84% corporate income tax, with the $800 minimum franchise tax concept applying to corporations as well.

## California Sales Tax

Most retailers of tangible personal property need to register for a Seller's Permit and collect sales tax. California's economic nexus threshold for remote sellers is $500,000 in California sales — notably higher than most states' $100,000 standard. Combined rates vary significantly by district and change periodically, so confirm the current rate for the specific city or county where a sale is sourced.

-   State rate: **7.25% (6.00% state + 1.25% mandatory local uniform tax)**, combined: 7.25%–10.75%, with district taxes adding 0.10%–4.00% depending on city/county (rates change periodically; several Santa Clara County cities increased rates April 1, 2026)
-   Registration: Seller's Permit registration through CDTFA, No fee fee with the California Department of Tax and Fee Administration (CDTFA)
-   The CDTFA assigns your filing frequency (monthly, quarterly, or annual) based on your reported sales volume.

## California Annual Report Requirement

California requires every LLC to file Statement of Information (Form LLC-12) with the California Secretary of State, due Initial filing within 90 days of formation, then every 2 years by the anniversary month. Filing fee: $20.

Missing the Statement of Information triggers a notice and a 60-day grace period; failing to file within that window brings a $250 penalty, and continued noncompliance can lead to Secretary of State administrative dissolution. Separately — and more severe — the Franchise Tax Board can suspend an LLC's powers and rights entirely for unpaid $800 tax or Gross Receipts Fee. A suspended LLC legally cannot conduct business, sue, or defend itself in California courts, which is a materially harsher consequence than SOS dissolution.

Reinstating from FTB suspension requires paying all back taxes, penalties, and interest, plus filing an Application for Revivor with the Franchise Tax Board — a separate and more involved process than simply catching up on a late Statement of Information.

## Federal Self-Employment Tax and How Your California LLC Is Classified

Regardless of which state you're in, LLC owners who materially participate in the business owe federal self-employment tax — 15.3% on net profit, covering Social Security (up to the $184,500 (2026) wage base) and Medicare (no cap).

### Single-Member LLCs

A single-member California LLC defaults to a disregarded entity for federal tax purposes — you report income and expenses on Schedule C of your personal Form 1040 and compute self-employment tax on Schedule SE. California adds its full income tax on top, plus the $800 Annual Tax and any applicable Gross Receipts Fee at the entity level, both owed regardless of member count.

### Multi-Member LLCs

A multi-member California LLC defaults to partnership taxation, filing Form 1065 federally and Form 568 with the state, issuing each member a Schedule K-1. Both single- and multi-member structures owe the identical $800 tax and Gross Receipts Fee regime — there's no California-specific distinction tied to member count beyond that.

## Should Your California LLC Elect S-Corp Taxation?

An S-Corp election lets you split LLC profit into a reasonable salary (payroll-taxed) and shareholder distributions (not subject to self-employment tax), once the business is consistently profitable enough to justify the added payroll complexity and the IRS's reasonable-compensation scrutiny.

**California's treatment:** California recognizes the federal S-corp election, but layers its own distinctive entity-level tax on top: 1.5% of net income, or the $800 minimum, whichever is greater, reported on Form 100S. This is genuinely different from most states, which impose no separate S-corp surtax at all.

California is the textbook example where S-corp election math is meaningfully more complicated than in a no-income-tax state: the election still saves on federal self-employment tax by converting part of profit into non-SE-taxed distributions, but California's added 1.5% entity-level S-corp tax partially offsets that benefit and must be modeled explicitly. Most practitioners still see the math favor S-corp election for LLCs with roughly $80,000+ in consistent net profit, but the break-even point is higher here than in states without the 1.5% overlay.

## California LLC Tax Costs at a Glance

Tax / Fee

Amount

Notes

Annual (Minimum Franchise) Tax plus the LLC Gross Receipts Fee (Form 3522 ($800 tax); Form 3536 (Gross Receipts Fee estimate); Form 568 (LLC return and reconciliation))

$800 flat, owed by every LLC regardless of income or activity, stacked with a tiered LLC Gross Receipts Fee once California-source gross receipts exceed $250,000: $900 ($250,000–$499,999), $2,500 ($500,000–$999,999), $6,000 ($1,000,000–$4,999,999), up to $11,790 (over $5,000,000)

Due The $800 tax is due the 15th day of the 4th month of the tax year (April 15 for calendar-year LLCs), including the LLC's first year — the first-year exemption that applied to LLCs formed 2021–2023 fully expired December 31, 2023, so any LLC formed since owes the full $800 in year one. The Gross Receipts Fee is estimated on Form 3536 (due June 15) and trued up on Form 568, the same due date as the $800 tax.

Statement of Information (Form LLC-12)

$20

Due Initial filing within 90 days of formation, then every 2 years by the anniversary month; a $250 penalty after a 60-day grace period following a delinquency notice if missed

Sales Tax

7.25% (6.00% state + 1.25% mandatory local uniform tax)

Combined: 7.25%–10.75%, with district taxes adding 0.10%–4.00% depending on city/county (rates change periodically; several Santa Clara County cities increased rates April 1, 2026)

Federal self-employment tax

15.3%

Applies to net profit up to the $184,500 (2026) Social Security wage base (Medicare portion has no cap)

State personal income tax (on your share of LLC profit)

Graduated, 1% to 12.3%, plus a 1% surcharge over $1M (effective top rate 13.3%)

This is the highest top marginal individual income tax rate in the country, and it applies in full to LLC pass-through profit — a major planning consideration for high-earning California LLC owners.

California registered agent (professional service)

$49–$300/yr

LLC Attorney service available

## How to Handle Your California LLC's Taxes

### If You Do It Yourself

**Step 1 — Get your federal EIN before anything else.**

Apply for your EIN for free directly at irs.gov — a purely federal application with no California-specific step.

**Step 2 — Confirm your default federal tax classification.**

A single-member LLC defaults to a disregarded entity (Schedule C); a multi-member LLC defaults to partnership taxation (Form 1065 plus Schedule K-1 for each member). Neither requires a separate election — this is automatic unless you file Form 8832 or Form 2553 to change it.

**Step 3 — Register with the California Franchise Tax Board (FTB) if required for state income tax withholding or estimated payments.**

This is the highest top marginal individual income tax rate in the country, and it applies in full to LLC pass-through profit — a major planning consideration for high-earning California LLC owners.

**Step 4 — Register for sales tax if you sell taxable goods or services.**

File Seller's Permit registration through CDTFA with the California Department of Tax and Fee Administration (CDTFA) at cdtfa.ca.gov, No fee fee. The CDTFA assigns your filing frequency (monthly, quarterly, or annual) based on your reported sales volume.

**Step 5 — Register for payroll/reemployment tax the moment you hire your first employee.**

The moment you hire your first employee, register with the California Employment Development Department. The 2026 new-employer unemployment insurance rate is 3.4% (for the first 2–3 years) on a taxable wage base of $7,000. California also requires mandatory State Disability Insurance (SDI) payroll withholding at 1.3% for 2026, with no wage cap — a genuinely distinctive feature since most states cap SDI-equivalent withholding, plus a 0.1% Employment Training Tax on the first $7,000 of wages.

**Step 6 — Set up quarterly estimated tax payments.**

If you expect to owe $1,000 or more in combined federal and California tax for the year, both the IRS and the Franchise Tax Board expect quarterly estimated payments covering income tax, federal self-employment tax, and your LLC's own $800 tax and Gross Receipts Fee installments.

**Step 7 — Calendar your Annual (Minimum Franchise) Tax plus the LLC Gross Receipts Fee due date.**

Annual (Minimum Franchise) Tax plus the LLC Gross Receipts Fee (Form 3522 ($800 tax); Form 3536 (Gross Receipts Fee estimate); Form 568 (LLC return and reconciliation)) is due The $800 tax is due the 15th day of the 4th month of the tax year (April 15 for calendar-year LLCs), including the LLC's first year — the first-year exemption that applied to LLCs formed 2021–2023 fully expired December 31, 2023, so any LLC formed since owes the full $800 in year one. The Gross Receipts Fee is estimated on Form 3536 (due June 15) and trued up on Form 568, the same due date as the $800 tax., $800 flat, owed by every LLC regardless of income or activity, stacked with a tiered LLC Gross Receipts Fee once California-source gross receipts exceed $250,000: $900 ($250,000–$499,999), $2,500 ($500,000–$999,999), $6,000 ($1,000,000–$4,999,999), up to $11,790 (over $5,000,000). Missing it puts your LLC in bad standing with the California Franchise Tax Board (FTB).

**Step 8 — File your Statement of Information every California deadline.**

Statement of Information (Form LLC-12) is due Initial filing within 90 days of formation, then every 2 years by the anniversary month with the California Secretary of State, $20 fee. Missing it triggers a $250 penalty after a 60-day grace period following a delinquency notice.

**Step 8 — Decide whether an S-Corp election makes sense once your LLC is consistently profitable.**

California is the textbook example where S-corp election math is meaningfully more complicated than in a no-income-tax state: the election still saves on federal self-employment tax by converting part of profit into non-SE-taxed distributions, but California's added 1.5% entity-level S-corp tax partially offsets that benefit and must be modeled explicitly. Most practitioners still see the math favor S-corp election for LLCs with roughly $80,000+ in consistent net profit, but the break-even point is higher here than in states without the 1.5% overlay.

**Step 9 — Watch for California-specific tax traps.**

The stacked $800 Annual Tax plus tiered Gross Receipts Fee is the single most important California-specific fact for any LLC owner to understand — it's owed regardless of profitability, and it applies on top of, not instead of, California's already-high 13.3% top personal income tax rate. The FTB's power to 'suspend' an LLC (distinct from and more severe than SOS administrative dissolution) is a common and expensive trap for owners who let the $800 tax lapse. Uncapped State Disability Insurance withholding is another distinctly California payroll quirk that surprises employers used to other states' wage caps.

**Step 10 — Keep business and personal finances completely separate.**

Commingling funds is the single biggest reason courts pierce the LLC liability shield, and it also makes tax preparation far more error-prone. Run all business income and expenses through a dedicated business bank account and keep receipts.

Ready to Launch Your Business in California?Follow our fast, easy process to get started right now.[Start My Business](https://app.llcattorney.com/formation?intake_type=formation)

### If LLC Attorney Does It for You

1.  Submit your information at llcattorney.com — entity classification, expected revenue, and whether you'll be hiring employees or collecting sales tax.
2.  LLC Attorney obtains your EIN, registers you with the California Franchise Tax Board (FTB) and California Department of Tax and Fee Administration (CDTFA) as needed, and sets up your compliance calendar for Statement of Information and Annual (Minimum Franchise) Tax plus the LLC Gross Receipts Fee.
3.  Receive reminders before every deadline through your client portal, plus access to flat-fee attorney consultations (no retainer) when an S-Corp election or multi-state question needs a licensed professional's judgment call.

## When Should You Talk to a Tax Professional About Your California LLC?

A CPA or attorney is worth engaging for a California LLC to correctly estimate your Gross Receipts Fee tier before the June 15 Form 3536 deadline, to model whether an S-Corp election's federal savings outweigh the added 1.5% entity-level tax at your specific profit level, to resolve an FTB suspension (which is materially more involved than a routine SOS reinstatement), and for any multi-state business given California's relatively high $500,000 economic nexus threshold for sales tax.

### Is California a State Where Tax Complexity Matters More?

California is genuinely one of the more complex states in this guide for LLC tax planning: a stacked entity-level tax and fee regime, the nation's highest top personal income tax rate, an additional 1.5% S-corp surcharge, and a distinct FTB suspension process on top of ordinary Secretary of State compliance. Getting the Gross Receipts Fee tier right — and not missing the difference between SOS dissolution and FTB suspension — genuinely benefits from a CPA's or attorney's involvement rather than DIY estimation.

## What You Actually Get With LLC Attorney's California Compliance Service

The $800 tax is owed the moment your LLC exists — there's no grace period for a new business with no revenue yet, and missing it risks FTB suspension, a status more severe than ordinary dissolution. LLC Attorney's California service keeps both your Secretary of State and Franchise Tax Board obligations on track from day one.

-   EIN obtained for you at no extra charge.
-   State tax and sales tax registration handled as part of formation, starting at $49.
-   An ongoing compliance subscription (available through an ongoing compliance subscription — contact LLC Attorney for current pricing) tracks every California deadline — Statement of Information, Annual (Minimum Franchise) Tax plus the LLC Gross Receipts Fee, and registered agent renewal.
-   Access to professionally trained Business Success Advisors at no charge, plus flat-fee attorney consultations (no retainer) for S-Corp election analysis and multi-state nexus questions.

California stacks more entity-level tax complexity onto an LLC than almost any other state — LLC Attorney keeps the $800 tax, the Gross Receipts Fee tier, and the Statement of Information all current, so a compliance gap never turns into an FTB suspension.

## Get Your California LLC's Taxes Set Up Correctly

Getting your EIN, tax registrations, and compliance calendar right from day one prevents expensive corrections later. LLC Attorney's California formation service starts at $49, and an ongoing compliance subscription (available through an ongoing compliance subscription — contact LLC Attorney for current pricing) keeps you ahead of every deadline after that. See our [full pricing](/pricing) for all service tiers.

Ready to Launch Your Business in California?Follow our fast, easy process to get started right now.[Start My California LLC](https://app.llcattorney.com/formation?intake_type=formation)

## Frequently Asked Questions

### Does my California LLC have to pay franchise tax?

![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75)

Yes, and it's two separate charges stacked together. Every California LLC owes an $800 flat Annual Tax regardless of income, due even in the first year of existence (the prior first-year exemption expired for LLCs formed after 2023). On top of that, once California-source gross receipts exceed $250,000, a tiered LLC Gross Receipts Fee applies — $900 to $11,790 depending on the tier. Electing S-corp status doesn't eliminate the $800; it's replaced by a 1.5% net-income tax if that's greater.

### Do I need to collect sales tax in California?

![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75)

Only if you sell taxable tangible personal property in California. Register for a free Seller's Permit through the CDTFA, then collect the 7.25% base rate (6.00% state plus a mandatory 1.25% local component) plus any applicable district tax, which can push combined rates up to 10.75% depending on location. California's economic nexus threshold for remote sellers is $500,000 in sales.

### What is the California Statement of Information and when is it due?

![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75)

Every California LLC files a Statement of Information (Form LLC-12) with the Secretary of State — the first one within 90 days of formation, then every 2 years thereafter, for a $20 fee. This is separate from, and in addition to, the Franchise Tax Board's $800 Annual Tax and Gross Receipts Fee.

### What happens if I miss a California LLC tax or filing deadline?

![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75)

Missing the Statement of Information triggers a notice, a 60-day grace period, then a $250 penalty and eventual SOS administrative dissolution risk. Separately, and more seriously, unpaid $800 tax or Gross Receipts Fee can trigger FTB suspension — a status that bars the LLC from legally conducting business or defending itself in court until reinstated via an Application for Revivor with all back taxes, penalties, and interest paid.

### Should my California LLC elect S-Corp taxation?

![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75)

It depends on your profit level, but California's math is more complex than most states'. An S-Corp election still reduces federal self-employment tax, but California replaces your $800 minimum with a 1.5% entity-level tax on net income (whichever is greater), partially offsetting the savings. Most practitioners see the math favor S-corp election starting around $80,000+ in consistent annual net profit.

### How is a single-member LLC taxed in California?

![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75)

A single-member California LLC defaults to a disregarded entity for federal tax purposes — you report income on Schedule C and pay self-employment tax via Schedule SE. California adds its graduated income tax (up to 13.3%) at the personal level, plus the $800 Annual Tax and any Gross Receipts Fee at the entity level, regardless of being single-member.

### I operate in multiple states — which state's taxes apply to my LLC?

![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75)

If your LLC does business in a state other than the one it's formed in — an office, employees, inventory, or significant sales there — you may have created nexus requiring registration and tax obligations in that state too. This is especially relevant for California, given its relatively high $500,000 economic nexus threshold compared to other states' $100,000 standard; it's worth a conversation with a tax professional if you operate in multiple states.

### How much will I actually pay in taxes on my California LLC?

![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75)

For a typical California LLC with in-state owners and no employees: a graduated state income tax up to 13.3% on your share of profit, the $800 Annual Tax plus any applicable Gross Receipts Fee tier at the entity level, plus federal income tax and 15.3% federal self-employment tax (up to the $184,500 Social Security wage base for 2026). Add 7.25%–10.75% sales tax only if you sell taxable goods, and factor in uncapped SDI withholding if you have employees.

### Does LLC Attorney help with LLC tax compliance?

![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75)

Yes. LLC Attorney's ongoing compliance subscription tracks your California filing deadlines, handles your Statement of Information, and connects you with flat-fee attorney consultations (no retainer) when a tax question needs a licensed professional's judgment call.

## Learn More About California

-   [California LLC Formation](/states/ca/llc-formation-california)
-   [California Registered Agent](/states/ca/registered-agent-california)