Compliance Guide — 2026

California LLC Filing Obligations Guide (2026)

Every deadline, form, penalty, and filing requirement for running a California LLC in 2026 — franchise tax, LLC income fee, Statement of Information, employer obligations, and more. In plain English.

Updated: March 29, 2026 · Tax Year 2026 · 22 min read
$800/yr
Minimum Annual Franchise Tax
$70
Formation Filing Fee
Apr 15
Franchise Tax Due Date
$11,790
Max LLC Income Fee ($5M+)
Disclaimer: This guide is a research summary for educational purposes — not legal or tax advice. Consult a qualified CPA or tax attorney before making compliance decisions.

2026 Filing Calendar — Quick Reference

Here’s every California LLC filing deadline for 2026 at a glance. Bookmark this table and check it quarterly.

Date / What’s Due / Filed With / Conditional? Date / What’s Due / Filed With / Conditional?
Date What’s Due Filed With Conditional?
Mar 15 Form 568 (multi-member LLCs) Franchise Tax Board Multi-member only
Apr 15 Annual $800 Franchise Tax FTB (Form 3522) All LLCs — mandatory
Apr 15 Form 568 (single-member LLCs) Franchise Tax Board Single-member only
Apr 30 EDD Payroll Tax Return — Q1 Employment Development Dept Only if employees
Jun 15 Estimated LLC Income Fee FTB (Form 3536) Only if CA income > $250K
Jul 31 EDD Payroll Tax Return — Q2 Employment Development Dept Only if employees
Oct 31 EDD Payroll Tax Return — Q3 Employment Development Dept Only if employees
Jan 31, 2027 EDD Payroll Tax Return — Q4 Employment Development Dept Only if employees
Biennial Statement of Information (Form LLC-12) Secretary of State All LLCs — every 2 years
Key Numbers for 2026

Formation fee: $70 · Annual franchise tax: $800 · Statement of Information: $20 biennial · LLC fee: $900–$11,790 (if CA income > $250K) · Late SOI penalty: $250

1. Forming a California LLC

Articles of Organization

To form a California LLC, you file Articles of Organization with the California Secretary of State. As of 2026, this is done online only through BizFile Online.

Item / Details Item / Details
ItemDetails
Filing Fee$70 (mandatory, no waivers)
Processing Time~2–3 business days online
Filing PortalBizFile Online
Name RequirementsMust include “LLC,” “L.L.C.,” or “Limited Liability Company”
ManagementChoose member-managed or manager-managed

What’s Required in the Articles

  • LLC name (with proper suffix)
  • Purpose (may state “any lawful purpose”)
  • Agent for Service of Process (name + CA street address for individual; name only for registered corporate agent)
  • Management structure (member-managed or manager-managed)
  • Organizer’s name and address

Operating Agreement

California is one of the few states that legally requires an operating agreement (CA Corporations Code § 17701.10(a)). It does not need to be filed with the state, but certain provisions — fiduciary duty modifications, indemnification — must be in writing with informed member consent.

Registered Agent (Agent for Service of Process)

Requirement / Details Requirement / Details
RequirementDetails
Who qualifiesCalifornia resident (individual) OR a registered 1505 corporate agent
AddressMust be a physical CA street address (no P.O. boxes)
AvailabilityMust be available during normal business hours
Self-representationLLCs cannot serve as their own agent in California
To change agentFile/update Statement of Information (no separate form needed)

2. Franchise Tax & LLC Income Fee

Annual Franchise Tax ($800 Minimum)

Every LLC organized or doing business in California owes an $800 minimum annual franchise tax — even if the LLC has no income, is losing money, or is completely inactive. This tax continues to accrue until the LLC is formally cancelled with both the Secretary of State and the Franchise Tax Board.

Item / Details Item / Details
ItemDetails
Amount$800/year — flat minimum, no exceptions in 2026
First-year due date15th day of 4th month after formation
Subsequent yearsApril 15 annually (calendar-year LLCs)
FormFTB 3522 (LLC Tax Voucher)
AB 85 waiverExpired after 2023 — no first-year exemption in 2026
AgencyFranchise Tax Board (FTB)
No First-Year Waiver

The AB 85 first-year franchise tax waiver expired after 2023. As of 2026, all California LLCs owe $800 from year one. Budget at least $870 for your first year ($70 formation + $800 tax).

LLC Income-Based Fee (Form FTB 3536)

LLCs with California-source income exceeding $250,000 owe an additional annual fee on top of the $800 franchise tax:

Total CA Income / Annual LLC Fee Total CA Income / Annual LLC Fee
Total CA IncomeAnnual LLC Fee
$0 – $249,999$0
$250,000 – $499,999$900
$500,000 – $999,999$2,500
$1,000,000 – $4,999,999$6,000
$5,000,000+$11,790
Estimated Fee Due June 15

The estimated LLC fee (Form 3536) is due by June 15 for calendar-year LLCs. If you underestimate, a 10% penalty applies on the underpayment amount. Safe harbor: pay at least the prior year’s total fee.

LLC Return of Income (Form 568)

LLC Type / Due Date / Extension LLC Type / Due Date / Extension
LLC TypeDue DateExtension
Multi-member (partnership) March 15 Automatic 7-month extension to file (NOT to pay)
Single-member (disregarded) April 15 Automatic 7-month extension to file (NOT to pay)

Who files: All California LLCs classified as partnerships or disregarded entities must file Form 568 with the Franchise Tax Board annually.

3. Statement of Information (Form LLC-12)

Overview

The Statement of Information reports your LLC’s current addresses, managers/members, and agent for service of process to the Secretary of State. It is separate from your tax filings.

Item / Details Item / Details
ItemDetails
FormLLC-12
Initial filingWithin 90 days of formation
Subsequent filingsEvery 2 years (biennial), by last day of anniversary month
Fee$20
Grace period60 days after due date
Late penalty$250 after grace period
Filing methodOnline via BizFile Online

Required Information

  • Principal business address
  • Mailing address
  • Names and addresses of all managers (if manager-managed) or members (if member-managed)
  • Agent for service of process name and address
  • Type of business
Don’t Miss the 90-Day Initial Deadline

The initial Statement of Information is due within 90 days of formation. This is one of the most commonly missed deadlines for new California LLCs. After the 60-day grace period, the Secretary of State charges a $250 penalty.

4. California Sales Tax

Overview

California imposes a statewide base sales tax rate of 7.25% (the highest state base rate in the U.S.). Local add-ons can bring the combined rate up to approximately 10.75% in some jurisdictions. Sales tax is collected by permit holders and remitted to the California Department of Tax and Fee Administration (CDTFA).

Seller’s Permit

Item / Details Item / Details
ItemDetails
Required ifYour LLC sells or leases tangible personal property subject to sales tax
CostFree (no charge for the permit), but a security deposit may be required
RegistrationOnline via CDTFA or in person
Key noteCalifornia has no statewide general business license — but a seller’s permit is required for taxable sales
Local Business Licenses

California does not have a statewide business license, but many cities and counties require their own business license or permit. Use CalGold to look up requirements for your specific location and industry.

5. Employer Obligations

Only If You Have Employees

EDD and workers’ comp obligations only apply if your LLC has employees. Solo owner-operators with no employees can skip this section.

EDD Registration

If your LLC pays $100 or more in wages in a calendar quarter, you must register with the Employment Development Department (EDD) within 15 days.

California Payroll Tax Rates (2026)

Tax / Rate / Who Pays / Wage Base Tax / Rate / Who Pays / Wage Base
TaxRateWho PaysWage Base
UI (Unemployment Insurance) 1.5%–6.2% (new employers: 3.4%) Employer $7,000/employee/year
ETT (Employment Training Tax) 0.1% Employer $7,000/employee/year
SDI (State Disability Insurance) 1.3% Employee (withheld) All wages (no cap since 2024)
PIT (Personal Income Tax) Progressive brackets Employee (withheld) Per withholding tables

Quarterly Filing Schedule

Employers file quarterly returns (Forms DE 9 and DE 9C) by the last day of the month following each quarter:

Quarter / Reporting Period / Due Date Quarter / Reporting Period / Due Date
QuarterReporting PeriodDue Date
Q1January – MarchApril 30, 2026
Q2April – JuneJuly 31, 2026
Q3July – SeptemberOctober 31, 2026
Q4October – DecemberJanuary 31, 2027

Workers’ Compensation Insurance

California requires workers’ compensation insurance for any LLC with one or more employees. This is significantly stricter than many states.

Item / Details Item / Details
ItemDetails
RequiredAny LLC with 1+ employees — mandatory
Penalty for non-complianceCriminal misdemeanor (CA Labor Code § 3700.5)
ExemptionsSingle-member LLCs with no employees; LLC members may self-exclude with proper waiver
AgencyDivision of Workers’ Compensation (DWC), Dept of Industrial Relations
Criminal Misdemeanor

Unlike Texas, where workers’ comp is optional, California treats failure to carry workers’ comp as a criminal offense. If you hire even one employee, get coverage immediately.

6. Penalties & Suspension

Franchise Tax Board Penalties

Violation / Penalty Violation / Penalty
ViolationPenalty
Late filing (Form 568)$18/member/month, up to 12 months
Late payment of tax5%/month of unpaid tax, up to 25%
Failure to file after demand$2,000 per entity per year
Estimated fee underpayment (Form 3536)10% of underpayment amount
InterestQuarterly rate set by FTB (based on federal rate)

Secretary of State Penalties

Violation / Penalty Violation / Penalty
ViolationPenalty
Late Statement of Information$250 (after 60-day grace period)
Continued non-filingSuspension or forfeiture of LLC

Suspension & Forfeiture

The FTB can suspend your LLC for non-payment of the $800 franchise tax or unfiled returns. A suspended LLC:

  • Cannot conduct business in California
  • Cannot defend lawsuits or enforce contracts
  • Cannot maintain good standing
  • Cannot file documents with the Secretary of State
How to Revive a Suspended LLC

To revive: file all delinquent returns, pay all taxes + penalties + interest, and obtain a Certificate of Revivor from the Franchise Tax Board. This can take 4–8 weeks.

7. Dissolution & Cancellation

Process

  1. Vote to dissolve — all members vote (or per operating agreement terms)
  2. Wind up affairs — pay debts, distribute remaining assets, close accounts
  3. File Certificate of Cancellation — Form LLC-4/7 with Secretary of State
  4. File final Form 568 with FTB and pay the final $800 franchise tax
  5. Request tax clearance from FTB
Item / Details Item / Details
ItemDetails
FormLLC-4/7 (Certificate of Cancellation)
Fee (by mail)$0
Fee (in person)$15 counter drop-off fee
Mail toSecretary of State, P.O. Box 944228, Sacramento, CA 94244-2280
In person1500 11th Street, 3rd Floor, Sacramento, CA 95814
Non-unanimous dissolutionFile Certificate of Dissolution (Form LLC-3) first, then LLC-4/7
Cancel Properly to Stop the $800 Tax

The $800 annual franchise tax continues to accrue until you formally cancel with both the Secretary of State and the Franchise Tax Board. Merely ceasing operations is not enough.

8. Annual Filing Calendar Summary

A consolidated view of every obligation and deadline for a California LLC in 2026:

Deadline / Obligation / Form / Action / Filed With Deadline / Obligation / Form / Action / Filed With
DeadlineObligationForm / ActionFiled With
Within 90 days of formationInitial Statement of InformationLLC-12 ($20)Secretary of State
15th of 4th month after formationFirst-year $800 franchise taxFTB 3522Franchise Tax Board
Mar 15Form 568 (multi-member)Form 568Franchise Tax Board
Apr 15Annual $800 franchise taxFTB 3522Franchise Tax Board
Apr 15Form 568 (single-member)Form 568Franchise Tax Board
Apr 30EDD Payroll Tax Q1DE 9 / DE 9CEmployment Development Dept
Jun 15Estimated LLC FeeFTB 3536Franchise Tax Board
Jul 31EDD Payroll Tax Q2DE 9 / DE 9CEmployment Development Dept
Oct 31EDD Payroll Tax Q3DE 9 / DE 9CEmployment Development Dept
Jan 31, 2027EDD Payroll Tax Q4DE 9 / DE 9CEmployment Development Dept
BiennialStatement of InformationLLC-12 ($20)Secretary of State
As neededRegistered agent changesUpdate via SOI filingSecretary of State

Foreign LLCs (Out-of-State LLCs Doing Business in CA)

Item / Details Item / Details
ItemDetails
FormApplication to Register a Foreign LLC (Form LLC-5)
Fee$70
RequirementCertificate of Good Standing from home state (less than 6 months old)
Must designateCalifornia registered agent
Must fileInitial SOI within 90 days, then biennially ($20)
Must pay$800 annual franchise tax + file Form 568

Beneficial Ownership Information (BOI)

Federal: Domestic LLCs are exempt from FinCEN BOI reporting as of March 26, 2025.

California state-level (SB 1201): Passed the CA Senate in May 2024 but stalled in the Assembly — not yet law as of March 2026. If enacted, it would require beneficial ownership disclosure in the Statement of Information. Monitor for updates.

Frequently Asked Questions

  • Every California LLC owes an $800 minimum annual franchise tax, due April 15. If your California-source income exceeds $250,000, you also owe an LLC income fee ranging from $900 to $11,790. Plus a $20 biennial Statement of Information. Budget at least $820 per year even with zero revenue.

  • No. The AB 85 first-year waiver expired after tax year 2023. As of 2026, all California LLCs owe the $800 franchise tax from their first year, due on the 15th day of the 4th month after formation.

  • The Statement of Information (Form LLC-12) reports your LLC’s current addresses, managers/members, and agent for service of process. The initial filing is due within 90 days of formation, then every 2 years by the last day of your anniversary month. Fee is $20, with a $250 late penalty after the 60-day grace period.

  • Yes. California requires workers’ comp for any LLC with one or more employees. Failure to carry coverage is a criminal misdemeanor under CA Labor Code § 3700.5. Single-member LLCs with no employees are generally exempt.

  • A suspended LLC cannot conduct business, defend lawsuits, maintain good standing, or enforce contracts. To revive, file all delinquent returns, pay all taxes + penalties + interest, and obtain a Certificate of Revivor from the FTB. This process can take 4–8 weeks.

  • Vote to dissolve, wind up affairs, file a Certificate of Cancellation (Form LLC-4/7) with the Secretary of State (free by mail), file a final Form 568 with FTB, pay the final $800 franchise tax, and request tax clearance. The $800 tax continues to accrue until you formally cancel.

Sources

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