Form 3522
When the $800 LLC tax is due
- LLCs on a January to December tax year pay by April 15; the next deadline is April 15, 2027.
- The Franchise Tax Board (FTB) adds a late payment penalty plus interest to a late $800.
- California waived the $800 for new LLCs only in tax years 2021 through 2023, so a 2026 LLC pays in its first year.
A North Park designer who formed an LLC in 2026 pays FTB the $800 annual LLC tax with Form 3522 each year.
Who pays the $800 LLC tax
Every LLC organized in California, registered with the Secretary of State or doing business in the state owes the annual tax, even with no sales.
The LLC owes the tax each year until it files a cancellation with the Secretary of State.
An LLC solely owned by a deployed service member, such as a Naval Base San Diego sailor on combat or homeland defense duty, owes no annual tax for that year.
The LLC needs $250,000 or less of total California income and a loss or closure that year, under a rule for tax years 2020 through 2029.
Owners inside City of San Diego limits also pay the City Treasurer's business tax and receive a Business Tax Certificate, the San Diego business license.
Form 3522 vs Form 3536
How to pay the $800
Owners who pay through Web Pay for Businesses skip the paper voucher, under the Form 3522 instructions. Owners who pay by check mail Form 3522 with it.
Form 3536 LLC fee
LLCs with total California income of $250,000 or more also estimate the LLC fee on Form 3536 by June 15 for a January to December year.
FTB counts total income as gross income plus cost of goods sold, from California sources.
| Total California income | LLC fee (2026) |
|---|---|
| $250,000 to $499,999 | $900 |
| $500,000 to $999,999 | $2,500 |
| $1,000,000 to $4,999,999 | $6,000 |
| $5,000,000 or more | $11,790 |
FTB adds a 10% penalty to an underpaid estimate, unless the LLC paid at least the prior year's fee by the due date.
LLC tax examples
| LLC | Total California income (2026) | Owes FTB for 2026 | When it pays |
|---|---|---|---|
| North Park studio, filed with the Secretary of State on August 3, 2026 | $120,000 | $800 tax, no LLC fee | $800 by November 15, 2026 |
| Gaslamp restaurant | $640,000 | $3,300: $800 tax plus $2,500 fee | $800 by April 15 and $2,500 by June 15, 2026 |
| La Mesa online shop | $1.2 million | $6,800: $800 tax plus $6,000 fee | $800 by April 15 and a $2,500 estimate by June 15, 2026, then the $3,500 balance with Form 3536 by the return due date |
The La Mesa shop owes no 10% penalty, because it paid at least its 2025 fee by June 15.
California S corp tax for LLCs
An LLC taxed as an S corporation files Form 100S and pays estimated tax with Form 100-ES.
- FTB charges 2026 California S corp tax at 1.5% of net income, with an $800 California minimum franchise tax.
- FTB waives that minimum for qualifying newly formed or qualified LLCs in their first taxable year, though the LLC still pays the 1.5% tax on first-year net income.
- When that minimum applies, the LLC pays it with its first Form 100-ES installment, by the California franchise tax due date: the 15th day of its 4th month.
When an LLC needs a CPA
San Diego owners near a fee bracket, or weighing an S corp election, can ask a CPA to check the numbers before the estimate is due. Check what a CPA costs for an LLC return before hiring.
How to choose a CPA