What is the procedure for paying the annual tax and fee for my Limited Liability Company (LLC) in California?

To maintain your California LLC, you must pay an annual $800 tax and a separate annual fee based on your total income, in addition to filing the required tax returns and a Statement of Information. The procedures involve separate state agencies and have different deadlines. Here is the procedure for paying your LLC's annual tax and fee: Step 1: Pay the Annual $800 LLC Tax This flat $800 tax is due regardless of your LLC's income or activity. The payment is due by the 15th day of the 4th month of your LLC’s taxable year. For most LLCs using a calendar year, the deadline is April 15th. You can pay online through the California Franchise Tax Board (FTB) Web Pay system or mail a check with FTB Form 3522 (LLC Tax Voucher). Step 2: Determine and Pay the Annual LLC Fee If your LLC's total income sourced from California is $250,000 or more, you owe an additional annual fee. This fee is calculated on a tiered scale. You must estimate and pay this fee by the 15th day of the 6th month of the taxable year (June 15th for most). You can pay online via FTB Web Pay or by mail with FTB Form 3536 (Estimated Fee for LLCs). Step 3: File Your LLC Return of Income You must file Form 568 (LLC Return of Income) with the FTB. This form is used to report the LLC’s income, deductions, and credits, and to officially calculate the final LLC fee you owe. The deadline is the 15th day of the 3rd month after the end of your taxable year (March 15th for most). Any remaining LLC fee is paid with this return. Step 4: File the Statement of Information This is a separate, non-tax requirement. You must file a Statement of Information (Form LLC-12) with the California Secretary of State every two years. The first filing is due within 90 days of your LLC's registration. You can file this online via the Secretary of State's bizfile portal for a $20 fee. Failure to file can lead to your LLC being suspended. Important Details and Nuances: The $800 annual tax is mandatory even if your LLC is inactive or operates at a loss. However, for LLCs that formed between January 1, 2021, and December 31, 2023, the first year's annual tax is waived. The LLC fee is based on total gross income from California, not net profit. Warnings and Limitations: The FTB imposes significant penalties and interest for late payments and filings. If you fail to pay your taxes and fees or file your returns, the FTB can suspend your LLC. A suspended LLC loses its rights and legal protections in California, meaning it cannot legally conduct business or defend itself in court. This is general information and does not constitute legal advice. For complex situations, such as a suspended LLC or questions about calculating your income, consult with a qualified California attorney or tax professional.