California LLC Taxes (2026)

Understand California LLC taxes in 2026, including federal classification, state tax registration, sales tax, payroll accounts, recurring fees, and local obligations.

California LLC taxes are more expensive and more complex than in many states. A California LLC commonly has to consider the $800 annual tax, Form 568, possible LLC fee based on California total income, seller’s permit obligations, payroll taxes, federal tax, and local business taxes.

Educational note: This guide is for general informational purposes only. It is not legal, tax, accounting, or financial advice. Confirm current requirements with the IRS, FTB, CDTFA, EDD, and qualified professionals.

First tax decision

For many California LLCs:

File Articles -> file Statement of Information -> get EIN if needed -> pay $800 annual tax when due -> file Form 568 -> register with CDTFA/EDD if required

$800 annual tax

The FTB says the LLC annual tax is $800. It applies if the LLC is doing business in California or registered with the Secretary of State.

For domestic LLCs, the first-year annual tax is due by the 15th day of the 4th month after filing Articles of Organization.

LLC fee

California charges an LLC fee based on California total income.

The estimated LLC fee is generally due by the 15th day of the 6th month of the current tax year.

Form 568

California LLCs generally file Form 568, Limited Liability Company Return of Income. Due dates depend on tax classification and ownership facts, and tax payments are not automatically extended just because filing is extended.

Seller’s permit and sales tax

If the LLC sells taxable items or otherwise has taxable sales activity, it may need a CDTFA seller’s permit. CDTFA says there is no charge for a seller’s permit, though a security deposit may be required.

Payroll and hiring

If the LLC hires employees, review:

• EIN
• EDD payroll tax registration
• Federal payroll tax
• Workers’ compensation
• New hire reporting
• Payroll records

Common tax mistakes

Thinking the $70 filing is the main cost

For most California LLCs, the $800 annual tax is much more important than the $70 Articles filing.

Relying on old first-year exemption articles

The FTB says the first-year annual tax exemption applied to LLCs organized or registered before January 1, 2024.

Confusing SOS and FTB

The Secretary of State forms and maintains entity records. FTB handles the $800 annual tax, Form 568, and LLC fee.

Ignoring the LLC fee

The fee starts at $250,000 of California total income.

Tax FAQ

Does a California LLC pay $800 every year?

Generally yes if it is registered with the Secretary of State or doing business in California, unless a specific exception applies.

Does a 2026 California LLC get the first-year $800 exemption?

Do not assume so. FTB says AB 85 provided the exemption for LLCs organized or registered on or after January 1, 2021 and before January 1, 2024.

What is the California LLC fee?

It is an additional fee based on California total income, starting at $900 when total income reaches $250,000.

Is seller’s permit free?

CDTFA says there is no charge for a seller’s permit, but a security deposit may be required.

Is EIN free?

Yes, when obtained directly from the IRS.

Official resources

• California FTB LLC filing information
• California LLC tax overview
• FTB LLC payment types
• CDTFA seller’s permit guidance
• California Statement of Information filing tips
• IRS EIN application