California LLC Tax Guide (2026)
Every tax a California LLC owes — what it is, when it's due, and how to pay it. Built for first-time founders, not CPAs.
Reviewed by the NerdMoney editors — 8+ years covering small-business formation, tax, and compliance across all 50 states.
California LLCs face four tax buckets: the $800 annual franchise tax (everyone), the LLC fee that kicks in over $250K gross (sliding scale up to $11,790), federal pass-through income tax on net profit, and self-employment tax at 15.3% on your share. Sales tax only applies if you sell physical goods. Below: each one explained, when it's due, and the exact form. If you want a filing service to handle the formation side so you can focus on running the business, we use Tailor Brands.
| Tax | Who pays | Amount | Due |
|---|---|---|---|
| Franchise tax (FTB Form 3522) | Every CA LLC | $800/year minimum | 15th day of 4th month after formation, then April 15 |
| LLC fee (FTB Form 3536) | LLCs over $250K gross | $900–$11,790 | June 15 (estimated) |
| Federal income tax | Owners (pass-through) | 10–37% of net profit | April 15 |
| Self-employment tax | Members actively working | 15.3% on share of profit | Quarterly estimates |
| California sales tax | Sellers of physical goods | 7.25%+ depending on city | Monthly or quarterly to CDTFA |
1. The $800 annual franchise tax — the one nobody warns you about
Every California LLC, regardless of revenue, owes the $800 minimum franchise tax to the Franchise Tax Board. Paid on Form 3522. It's due by the 15th day of the 4th month after you form, and every April 15 after that.
Form an LLC in November? You owe $800 for that stub year and $800 again by April 15. Wait until January if you can.
2. The LLC fee — only over $250K gross receipts
On top of the $800, California charges an additional LLC fee based on total gross receipts (not profit). It scales:
- Under $250K: $0
- $250K–$499,999: $900
- $500K–$999,999: $2,500
- $1M–$4,999,999: $6,000
- $5M+: $11,790
Paid on Form 3536 by June 15 as an estimate, then reconciled with Form 568.
3. Federal income tax — pass-through by default
An LLC isn't a tax classification — it's a legal structure. By default, a single-member LLC is taxed as a sole proprietorship (Schedule C). Multi-member is taxed as a partnership (Form 1065). All profit flows to your personal 1040 and gets taxed at your bracket (10–37%).
4. Self-employment tax — the 15.3% nobody budgets for
Active members owe 15.3% self-employment tax (Social Security + Medicare) on their share of profit. This is on top of income tax. If your LLC nets $80K, expect roughly $12,240 in SE tax alone. Many founders elect S-corp status once profit exceeds ~$60K to legally cut this — talk to a CPA before electing.
5. California state income tax — passes through too
Your share of LLC profit also gets taxed on your CA personal return at 1–13.3% depending on income. Reported on Form 540 with a Schedule CA.
6. Sales tax — only if you sell physical goods
If you sell tangible products to California buyers, you need a seller's permit from the CDTFA. Rates start at 7.25% and go up to ~10.75% in some cities. Services and digital products generally aren't taxed.
How to actually pay each tax
- $800 franchise tax: Web Pay at ftb.ca.gov, Form 3522
- LLC fee: Web Pay, Form 3536 (estimate) + Form 568 (annual return)
- Federal tax: IRS Direct Pay or EFTPS, quarterly estimated payments (Form 1040-ES)
- Sales tax: CDTFA online portal
Are CA LLC taxes deductible?
Yes — the $800 franchise tax and LLC fee are deductible as ordinary business expenses on your federal return (but not on your California return — CA doesn't let you deduct its own taxes).
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 — Form 3522 ($800 LLC tax) — ftb.ca.gov
- CDTFA — Sales and use tax — cdtfa.ca.gov
FAQ
When are California LLC taxes due?
The $800 franchise tax is due by the 15th day of the 4th month after formation, then every April 15. The LLC fee (if over $250K gross) is estimated by June 15. Federal income tax is due April 15.
How much tax does a California LLC pay?
At minimum, $800/year for the franchise tax. Above $250K gross you also owe the LLC fee ($900–$11,790). Federal income tax and self-employment tax depend on profit.
Is the $800 California LLC fee tax deductible?
Yes, on your federal return as an ordinary business expense. Not deductible on the California return.
Can I pay California LLC tax online?
Yes. Use Web Pay at ftb.ca.gov for the $800 franchise tax (Form 3522) and the LLC fee (Form 3536).
How is a single-member LLC taxed in California?
By default, as a sole proprietorship — profit reported on Schedule C of your 1040. You still owe California's $800 franchise tax separately.