The $800 California LLC Fee, Explained (2026)
Every question new CA LLC owners ask about the $800 franchise tax — when it's due, how to pay, whether you can avoid it, and what's deductible.
Reviewed by the NerdMoney editors — 8+ years covering small-business formation, tax, and compliance across all 50 states.
Every California LLC owes a $800 annual minimum franchise tax to the Franchise Tax Board (FTB) — even with zero revenue, even if the LLC is dormant. It's paid on Form 3522, due by the 15th day of the 4th month after formation, then every April 15. Below: every question CA founders ask about the $800 — when exactly it's due, how to pay it online in 5 minutes, whether you can legally avoid it (mostly no), and if it's deductible (yes, federally).
| Question | Answer |
|---|---|
| Who pays it? | Every CA LLC, even with $0 revenue |
| How much? | $800 minimum per year |
| When in year 1? | 15th day of 4th month after formation |
| When after that? | April 15 every year |
| Where to pay? | ftb.ca.gov Web Pay, Form 3522 |
| Federally deductible? | Yes, as ordinary business expense |
| CA-deductible? | No |
| Late penalty? | 5% + 0.5%/month interest |
What is the $800 California LLC fee?
It's the minimum franchise tax California charges every LLC for the privilege of doing business in the state. It's paid to the Franchise Tax Board, not the Secretary of State. The $800 is a floor — your actual franchise tax is the greater of $800 or what's calculated on gross receipts.
When is the $800 LLC fee due?
Year 1: by the 15th day of the 4th month after your LLC is formed. Form on January 10 → due May 15. Form on November 10 → due March 15 of the next year, AND you owe another $800 by April 15.
Every year after: April 15.
How to pay the $800 LLC fee online (5 minutes)
- Go to ftb.ca.gov/pay
- Click Web Pay for Businesses
- Enter your CA Secretary of State entity number (12 digits)
- Select Limited Liability Company Tax (Form 3522)
- Enter $800, pick the tax year, pay with checking or savings (free)
Confirmation comes by email immediately. Save it.
Can I avoid the $800 California LLC fee?
Short answer: almost never legally. Common attempts that don't work:
- "I'll form in Delaware/Wyoming." If you operate in California, you must register as a foreign LLC — and you'll owe the $800 anyway.
- "My LLC made $0." Doesn't matter. The $800 is a minimum, not a tax on profit.
- "I'll let it go dormant." A dormant LLC still owes $800/year until you formally dissolve it.
The first-year exemption for LLCs formed 2021–2023 has expired. The only real way to stop owing it is to dissolve the LLC.
Is the $800 LLC fee tax deductible?
Yes — on your federal return as an ordinary business expense (line 23 of Schedule C, or the equivalent on Form 1065/1120-S). California does not let you deduct it on your CA return.
What about late payment?
FTB charges a 5% penalty on the unpaid amount plus 0.5%/month interest. They can also suspend your LLC — meaning you can't legally do business, file lawsuits, or defend lawsuits until you pay and reinstate.
Is the $800 the only CA LLC tax?
No. Above $250K gross receipts you also owe the LLC fee ($900–$11,790). And you'll owe federal + CA income tax on profit. Full California LLC tax guide →
Sources & further reading
- California Secretary of State — Business Filings — sos.ca.gov
- Franchise Tax Board — LLC tax information — ftb.ca.gov
- IRS — Apply for an EIN online — irs.gov
- FTB Web Pay for Businesses — ftb.ca.gov
- FTB Form 3522 (2024) — ftb.ca.gov
FAQ
When is the $800 LLC fee due in California?
By the 15th day of the 4th month after formation in year 1, then every April 15. Form in January means due May 15; form in November and you owe for the stub year and again by April 15.
How do I pay the $800 LLC fee in California?
Use Web Pay at ftb.ca.gov, select 'Limited Liability Company Tax' (Form 3522), enter your entity number, and pay $800 from a checking or savings account for free.
How can I avoid the $800 California LLC fee?
Legally, you almost can't. Forming in Delaware or Wyoming doesn't help if you do business in California. The first-year exemption has expired. The only way to stop owing it is to dissolve the LLC.
Is the $800 California LLC fee tax deductible?
Yes — on your federal return as an ordinary business expense. Not on your California state return.
Do all California LLCs have to pay the $800?
Yes. Every CA LLC owes the $800 minimum franchise tax annually, regardless of revenue, profit, or activity level.