California LLC $800 Franchise Tax and Statement of Information: What to Know

What Is California's $800 Minimum Franchise Tax, and Who Owes It

California charges a minimum franchise tax of $800 per year to LLCs registered or doing business in the state. This is administered by the Franchise Tax Board (FTB), the state's tax agency, and it is owed for the privilege of operating as an LLC in California. The defining feature is that it does not depend on whether you made money. An LLC with no revenue, no customers, and no activity still generally owes the $800 minimum for each year it exists and is in good standing.

• Domestic California LLCs. Formed by filing Articles of Organization with the California Secretary of State.
• Foreign LLCs registered in California. Formed in another state but registered to do business in California.
• LLCs doing business in California. An LLC can be treated as doing business in the state based on its activity there, which can create the obligation even without a formal registration. Confirm your specific situation with the FTB or a tax professional.

The $800 is a minimum, not a cap. Many LLCs owe only the $800. Higher-revenue LLCs can owe more because of a separate income-based fee covered later in this guide. Tax rules change, so confirm the current minimum and your filing obligation on the FTB website before you budget.

First-Year Rule: The $800 Exemption Nuance

California has, at times, offered relief from the $800 minimum franchise tax in an LLC's first year. Whether that relief applies to your LLC depends on the rules in effect for the year you formed, and the details have changed over time. Some sources, including general AI summaries, describe a blanket first-year exemption, but the actual rule has had specific date windows and conditions. For that reason, treat first-year relief as something to verify rather than assume.

The safe approach is to plan as if you may owe the $800 in year one, then adjust only if the FTB confirms relief applies to your situation. Even where a first-year break exists, the obligation typically returns in the second year and every year after, so the $800 belongs on your recurring compliance budget regardless.

When and How to Pay the $800

The minimum franchise tax is paid using FTB Form 3522, the LLC Tax Voucher. The payment is generally due by the 15th day of the 4th month after the beginning of the LLC's tax year. For a calendar-year LLC, that lands around April 15. Because the due date is tied to your tax year rather than your formation date alone, count carefully and confirm the exact date on the FTB schedule.

1. 1Determine your LLC's tax year and the 15th day of the 4th month after it begins.
2. 2Pay the $800 using FTB Form 3522, either electronically through the FTB Web Pay system or by mailing the voucher with a check.
3. 3Keep the confirmation, because the franchise tax is an annual obligation and you will repeat this each year the LLC is active.

Web Pay lets you submit the payment online from a bank account, which is the simpler route for remote owners. Whichever method you use, the franchise tax is its own line item. Paying it does not satisfy the income-based LLC fee or the Statement of Information, which are described next.

The LLC Fee on Top of $800: Gross Receipts Tiers

On top of the $800 minimum, California imposes a separate income-based LLC fee on LLCs whose total annual California gross receipts reach certain levels. This fee is reported on FTB Form 3536, the Estimated Fee for LLCs, and it rises in tiers as gross receipts increase. Lower-revenue LLCs generally owe no LLC fee and pay only the $800 minimum.

Two points matter here. First, the LLC fee is based on gross receipts, not net profit, so a high-revenue but low-margin business can still owe a meaningful fee. Second, because the fee is estimated and paid during the year on Form 3536, you generally need to project your gross receipts rather than wait until you file. The figures above are approximate and change over time, so verify the current tiers with the FTB.

Statement of Information (Form LLC-12): Biennial, $20, and the Address That Goes Public

The Statement of Information (SOI) is a separate filing made with the California Secretary of State, not the Franchise Tax Board. California LLCs file it on Form LLC-12. The filing fee is $20, and for LLCs it is generally filed every two years, which is why it is described as biennial. There is also an initial filing requirement: a new LLC generally must file its first Statement of Information within 90 days of formation.

The Statement of Information collects current details about the LLC, including the name and address of the business, the registered agent, and the managers or members. Here is the part that surprises many founders. The Statement of Information is a public record. The addresses you list on it can be viewed by anyone who looks up your LLC in the Secretary of State's business search. That includes the address you use for the principal office and the agent for service of process, depending on how you set things up.

Choosing the Address You Put on Your SOI: Why a Real Street Address Matters

Because the Statement of Information is public and ties together your state record, the address you list is worth a deliberate decision rather than a default. For remote founders, an out-of-state owner, or anyone running a California LLC from a laptop, the easy move is to use a home address. The cost of that convenience is that your home becomes part of a searchable public record, and removing it later means filing an amended Statement of Information and hoping third-party databases that copied it update too.

• Public exposure. The Statement of Information is searchable, so a home address on it can surface in business databases, marketing lists, and anyone's casual lookup.
• Hard to undo. Once an address is on the public record and copied elsewhere, an amendment updates the official filing but does not erase older cached copies.
• Consistency. Using one real business address across formation, the EIN, the bank account, and the Statement of Information avoids mismatches that banks and the state may flag.
• No PO boxes for the principal office. California expects a real street address for the principal office and for the agent for service of process, not a PO box.

This is where a real US street address that is accepted for California LLC filings does the work. save office maintains addresses in California cities including San Francisco and Los Angeles, so you can list a genuine commercial street address on your Statement of Information instead of your home. For founders who want a Bay Area presence, the San Francisco virtual office address for LLCs guide covers the SF setup, and the Los Angeles virtual office address for LLCs guide covers the LA option.

Before you commit any address to a state filing, confirm it is a real, deliverable street address. You can run an address through the free Address Checker to verify it before you file. If a California business address is the missing piece, save office onboarding walks through picking a city and activating the address.

Penalties, Suspension, and Staying Compliant

California treats both the Franchise Tax Board obligations and the Secretary of State filing seriously. Failing to pay the $800 minimum or the LLC fee can lead to penalties and interest from the FTB. Failing to file the Statement of Information on time can lead to a penalty and, after continued delinquency, suspension of the LLC by the state. A suspended LLC can lose the ability to enforce contracts and conduct business until it is brought back into good standing, which generally means filing the missing documents and paying the back amounts.

The practical defense is a simple compliance calendar that treats each obligation as its own deadline.

1. 1$800 minimum franchise tax (FTB Form 3522). Annual, generally due the 15th day of the 4th month of your tax year.
2. 2Income-based LLC fee (FTB Form 3536). Annual if your gross receipts reach the fee tiers, estimated and paid during the year.
3. 3Statement of Information (Form LLC-12). Initial filing within 90 days of formation, then generally every two years, $20 each time.

A California LLC carries two parallel obligations that founders often blur together. The Franchise Tax Board side is the $800 minimum franchise tax every year plus an income-based LLC fee once your gross receipts climb, paid on Forms 3522 and 3536. The Secretary of State side is the Statement of Information, Form LLC-12, filed within 90 days of formation and then biennially for $20, and it puts an address on the public record. Keep the two on separate lines of your calendar, verify the current amounts and first-year rules directly with the FTB, and choose a real business street address for the public filing so your home stays off the record. Handle those pieces and the annual upkeep of a California LLC becomes routine rather than a source of penalties.