Key Takeaways

  • Form 3522 due date: For new LLCs, the $800 annual franchise tax is due by the 15th day of the 4th month after formation. After the first year, it’s due every April 15.
  • Payment methods: You can pay online through the California Franchise Tax Board (FTB), by mail with Form 3522, or via approved electronic funds transfer.
  • Other California LLC fees: LLCs may also owe estimated fees (Form 3536) if income exceeds $250,000 and must file Form 568 annually.
  • Penalties for late payment: Late or missed payments can result in penalties, interest, and suspension of the LLC’s rights to operate in California.
  • Exemptions: Certain LLCs (e.g., first-year newly formed LLCs under specific legislation) may receive temporary waivers, though these rules vary by year and legislative updates.

The CA LLC fee due date depends on which fee you are paying. For instance, the Statement of Information filing fee is due every two years. Other California LLC fees require annual payments:

  • LLC franchise tax
  • LLC estimated fees
  • LLC Return of Income

Paying Your Annual LLC Fees

Paying your LLC's annual fees is an important part of keeping your California business in good standing. Failing to pay these fees means you will no longer be able to do business in this state. California will shut down your business if you do not pay these fees on time. Fortunately, most of the annual fees in California are affordable, and paying these fees and submitting the correct documents is relatively easy.

One of the most important annual fees in California is the Statement of Information filing fee, which costs $20. LLCs use the Statement of Information to update information about the company. You will need to pay this $20 fee each time you need to update your LLC's information. You must submit your LLC's initial Statement of Information within 90 days of California approving the LLC.

You need to submit a new Statement of Information every two years. If you decide to pay this or any other fee by check, make the check payable to the Secretary of State. The Statement of Information form is accessible online. The LLC franchise tax is another important fee. LLCs must pay this fee every year, and it costs $800. When paying the LLC franchise tax, you must also file Form 3522.

This tax is not based on a company's earnings, and every LLC in the state must pay this fee. The first time an LLC files Form 3522, the due date is the 15th day of the fourth month after the LLC was filed. Every year after this point, the LLC franchise tax and Form 3522 are due on April 15. If an LLC is formed later in one of the last three months of the year, it will need to pay this fee twice in a short period of time. Filing after the first of the year will help you avoid this issue.

Estimated fees for LLCs are only required for companies that have earned more than $250,000 in a tax year. The amount of the fee will depend on how much the company earns and can range from $900 to $11,790. Paying this fee also requires filing Form 3536. Estimated fees for LLCs are first due six months after filing the LLC. Subsequent Estimated fees are due on June 15.

Understanding Form 3522 Due Date

Form 3522, also known as the LLC Tax Voucher, is used to pay California’s $800 annual franchise tax. The due date for this form depends on when your LLC was formed:

  • First-year LLCs: The $800 payment is due by the 15th day of the 4th month after the date of formation or qualification to do business in California. For example, if your LLC was formed on January 10, the due date is May 15.
  • Subsequent years: After the first year, the annual $800 payment is due on April 15 of each taxable year, regardless of when the LLC was formed.
  • Special timing consideration: If an LLC is formed in the final quarter of the year (October–December), it may owe the $800 twice in quick succession—once in the first year and again the following April.

Timely payment ensures your LLC remains in good standing with the Franchise Tax Board. Failure to pay by the Form 3522 due date can result in additional charges and potential suspension of your business rights.

Reporting Financial Activities

California LLCs must report their financial activities by filing an LLC Return of Income form (Form 568). The fees that apply to this form will depend on a company's financial activity. Several pieces of information must be reported on this form:

  • The annual franchise tax and estimated fees.
  • The company's income, gains, and losses.
  • Any other taxes paid by the company.

On the LLC Return of Income, you will also need to report non-resident LLC member taxes and any penalties or deficits incurred after filing Form 3536. The LLC Return of Income must be filed annually. Typically, this form is due by March 15 or April 15, depending on the tax status of the LLC. LLCs that are taxed as a sole proprietorship will file by March 15, as will most LLCs that opt to be taxed as partnerships.

LLCs taxed as a C corporation or S corporation will not use Form 568. Instead, these LLCs will report their financial activity using either Form 100S or Form 100. Both of these forms are due on March 15. You can download the LLC Return of Income form online, and you may also want to download the available booklet that details how to complete the form and when you should file the form.

Paying annual fees in California can be very difficult, and if you pay your fees incorrectly or forget to pay them at all, your LLC may lose its good standing and will no longer have the ability to operate in California. In addition to consulting with an attorney, you can get help understanding your annual fees by contacting the California Franchise Tax Board.

Exemptions and Legislative Updates

California law has occasionally granted relief from the $800 franchise tax for new LLCs during their first taxable year. For example, under Senate Bill 1447, LLCs formed in certain years were temporarily exempt from paying the first-year annual tax. However, this exemption does not apply universally and may change depending on legislative updates. Business owners should confirm the latest rules with the Franchise Tax Board or a qualified tax professional before assuming an exemption applies.

Penalties and Interest for Late Payments

If Form 3522 is not paid by its due date, the California Franchise Tax Board may impose:

  • Late payment penalty: Generally 5% of the unpaid tax plus 0.5% for each month the payment is late.
  • Interest charges: Accrues on the unpaid balance until the amount is fully paid.
  • Suspension or forfeiture: If the $800 annual tax remains unpaid, the LLC’s powers, rights, and privileges may be suspended, preventing it from legally operating in California.

Prompt payment helps avoid compounding penalties and preserves the LLC’s legal standing.

How to File and Pay Form 3522

LLCs can pay the annual franchise tax in several ways:

  1. Online through FTB Web Pay – The most convenient and recommended method.
  2. By mail – Submit a check or money order along with the completed Form 3522 voucher.
  3. Electronic funds transfer (EFT) – Required for payments over $20,000 or if your LLC’s estimated tax liability exceeds $80,000.

When mailing, ensure the payment is made to the Franchise Tax Board and sent to the address listed on Form 3522. Always include the LLC’s name, address, and Secretary of State file number to avoid processing delays.

Frequently Asked Questions

  1. What is Form 3522?
    Form 3522 is the payment voucher used by California LLCs to pay the mandatory $800 annual franchise tax to the Franchise Tax Board.
  2. When is Form 3522 due for a new LLC?
    It is due by the 15th day of the 4th month after your LLC is formed or registered in California.
  3. How can I pay the $800 California LLC tax?
    You can pay online through FTB Web Pay, by mailing Form 3522 with a check, or through electronic funds transfer.
  4. What happens if I miss the Form 3522 due date?
    Late payments may result in penalties, accruing interest, and even suspension of your LLC’s right to operate in California.
  5. Are any LLCs exempt from the $800 annual tax?
    In some years, new LLCs have been temporarily exempt from the first-year tax under specific laws, but exemptions are limited and subject to legislative updates.

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