LLCs classified as partnerships or disregarded entities (single member) generally determine their California income, deductions, and credits under Personal Income Tax law. In other words there is no State tax due at the LLC level.
LLCs classified as partnerships or disregarded entities are subject to an $800 annual tax if they are doing business in California, or the California Secretary of State accepts their articles of organization or certificate of registration. The annual tax is pre-paid for the privilege of doing business in California and is due on the 15th day of the fourth month after the beginning of the taxable year. LLCs must file form FTB 3522, LLC Tax Voucher, to pay the annual tax.
Due date for first year annual tax:
A domestic LLC has until the 15th day of the fourth month after filing its articles of organization with the Secretary of State to pay the first year annual tax.
If an existing foreign LLC registers or begins doing business in California after the 15th day of the fourth month of its taxable year, the first year annual tax is due immediately upon commencing business in California or registering with the Secretary of State.
Mail the LLC annual tax payment with FTB 3522 to:
FRANCHISE TAX BOARD
PO BOX 942857
SACRAMENTO CA 94257-0631
California LLCs are also subject to an annual fee based on their total income. Total income is defined as the sum of worldwide gross income plus cost of goods sold (R&TC Section 24271). The LLC fee is due on the original due date of the return, which is the 15th day of the fourth month following the close of its taxable year. Use Form 568 Limited Liability Company Return of Income, to report income and the fee.
For 2001 & After if the total income is:
$250,000 to $500,000 then the total fee amount is $900
$500,000 to $1,000,000 "____________________" $2,500
$1,000,000 to $5,000,000"___________________ " $6,000
$5,000,000 Or More "______________________ " $11,790
Last edited by TaxGuru : 02-20-2007 at 03:50 PM.