How to File LLC Taxes in California (2026)
California LLC owners file Form 568 with the Franchise Tax Board for single-member and multi-member LLCs, Form 100S for an S-corp election and Form 100 for a C-corp election.
Every LLC also owes an $800 minimum annual tax, and many owe an income-based LLC fee on top of it.
This page walks through which form fits your LLC's tax classification, when each one is due and the other California taxes that come with running an LLC here, from payroll to sales tax.
Quick Summary
- Every CA LLC deals with two agencies each year. The IRS taxes your federal return, and the Franchise Tax Board taxes the California one.
- Confirm this year's income tax brackets on the FTB's rate schedule before you file. The FTB hadn't posted 2026 breakpoints at this page's last check.
- Talk to a CPA before electing S-corp status or the PTE tax. Both can lower your bill, but only if your numbers actually support it.
California LLC Tax Summary
The table below lines up the federal form, the California form and the filing deadline for each LLC tax classification.
| LLC Type | Federal Form | State Form | Filed With | Filing Deadline & Tax Rate |
|---|---|---|---|---|
| Single-member LLC | Form 1040 (Schedule C) | Form 568 | FTB | 15th day of 4th month (April 15); $800 annual tax |
| Multi-member LLC | Form 1065 | Form 568 | FTB | 15th day of 3rd month (March 15) return; $800 tax due 15th of 4th month (April 15) |
| S-Corp election | Form 1120-S | Form 100S | FTB | 15th day of 3rd month (March 15); 1.5% of net income or $800 min |
| C-Corp election | Form 1120 | Form 100 | FTB | 15th day of 4th month (April 15); 8.84% of net income or $800 min |
| Franchise/annual LLC tax & fee | N/A | FTB 3522 / FTB 3536 | FTB | $800 by 15th of 4th month; LLC fee ($900-$11,790) by 15th of 6th month if income ≥ $250,000 |
How California LLCs are taxed
California treats LLCs as pass-through entities by default. Profits flow to the members' personal returns instead of being taxed at the entity level first.
An LLC can elect S-corp or C-corp treatment instead, and California follows whatever classification the LLC picked for federal purposes. See the complete guide to how LLC taxes work for the federal side of that choice.
LLCs with more than $250,000 in California income also owe an LLC fee on top of the annual tax, using Form FTB 3536. The fee ranges from $900 to $11,790 depending on total income for the year.
That fee is estimated and paid by the 15th day of the sixth month, with any balance due when you file the return. The annual tax itself pairs with Form FTB 3522.
Filing your state taxes with the FTB is separate from keeping the LLC in good standing with the Secretary of State.
California LLCs also file a California LLC annual report, the Statement of Information, every two years, and that filing has nothing to do with your tax bill.
California state taxes by LLC type
Each LLC classification below files its own state form, on its own deadline and for its own price. The personal income tax rate that applies once profits reach your own return follows in its own section here.
1. Single-member LLC: Form 568
A single-member LLC still files Form 568 with the FTB, even though the IRS treats it as a disregarded entity and folds its income into your personal Form 1040.
The full cost of running an LLC in California starts with the $800 annual tax, due the 15th day of the fourth month of the LLC's tax year.
Form 568 shares that deadline, unless a pass-through entity owns the SMLLC, which pushes the due date to the third month instead. An authorized member or manager has to sign it for the FTB to accept the return.
2. Multi-member LLC: Form 568
A multi-member LLC also files Form 568 with the FTB and follows the same annual tax rules as a single-member LLC. The state treats it as a partnership by default, matching the federal Form 1065 election.
For a calendar-year LLC, Form 568 falls due on March 15, the 15th day of the third month once the tax year closes. LLCs in good standing get an automatic seven-month extension to file the return.
The annual tax and any LLC fee follow their own April 15 deadline, so the extension on Form 568 doesn't push those payments back too.
3. S-Corp election: Form 100S
Electing S-corp status swaps Form 568 for Form 100S, and the tax changes with it. California taxes the S-corp on the greater of 1.5% of its net income or the $800 minimum franchise tax, on top of whatever the owners pay on their personal returns.
Form 100S lands on the same March 15 schedule as a partnership-taxed LLC, three months after the tax year ends. A CPA familiar with the FTB can model whether the S-corp election actually saves money before you file it.
4. C-Corp election: Form 100
A C-corp election moves the LLC to Form 100 and an entity-level tax on the greater of 8.84% of net income or an $800 minimum franchise tax.
The corporation pays this tax itself, and any dividends the owners later take are taxed again on their personal returns.
Form 100 comes due on April 15 for a calendar-year corporation, four months after the tax year ends. That's the same date as the LLC's own annual tax, so a newly elected C-corp should plan for both bills at once.
5. California income tax rate for tax year 2026
LLC profits that flow through to the owners are taxed on the owners' personal returns at nine California brackets, from 1% up to 12.3% [1].
The FTB's most recent rate schedule still uses 2025 dollar breakpoints, though the percentages themselves carry over unchanged. Confirm the current thresholds on the FTB's site before you file.
Income above $1,000,000 also owes California's 1% Behavioral Health Services Tax, formerly called the Mental Health Services Tax, which pushes the top combined rate to 13.3% [2].
Federal taxes California LLC owners pay
LLC owners who report income on Schedule C, as partners or as S-corp shareholders pay federal self-employment tax on their share of the earnings, at a flat 15.3% [3].
California doesn't stack a separate state self-employment tax on top of that federal one. Your state income tax already reaches that same money through the personal return.
Owners who expect to owe money make quarterly estimated payments on April 15, June 15, September 15 and January 15 [4]. California follows the same four dates for state estimated payments, using Form 540-ES instead of the IRS voucher.
Other California taxes that may apply
Beyond income tax, most California LLCs run into at least one of the following:
1. Employer taxes
The moment you hire your first employee, you register with the EDD and start paying unemployment insurance, training tax and disability insurance withholding.
New employers pay a 3.4% UI rate for their first two to three years, on the first $7,000 of each employee's wages [5].
The employment training tax adds another 0.1% on that same $7,000 wage base, and the 2026 disability insurance withholding rate is 1.3% with no wage cap.
2. Sales and use tax
If your LLC sells taxable goods, you register with the CDTFA before you make your first sale. The statewide rate is 7.25%, and most cities and counties layer on a district tax of 0.10% to 2.00% on top of it [6].
3. Industry and local taxes
Some cities and counties charge their own business license tax or local gross receipts tax on top of the state taxes above, so check with the city or county where your LLC operates before you assume the state list is the whole bill.
California pass-through entity tax (PTET) election
Partnerships and S-corps taxed as pass-throughs can elect to pay California's PTE elective tax at the entity level, at 9.3% of the owners' qualified income [7].
Owners who consent then get a matching credit on their own California returns, which is the main reason to elect it.
The first payment is due June 15 of the election year, on a timely filed original return using Form FTB 3804.
Any credit an owner can't use right away carries over for up to five years, and the election runs through tax years that begin before January 1, 2031.
Many owners elect the PTE tax specifically to work around the federal limit on deducting state and local taxes, but the math only pays off after a CPA runs your specific numbers.
What is deductible for a California LLC
California does not conform to the federal qualified business income deduction under IRC Section 199A, so that federal write-off has no effect on your California tax bill.
The state generally follows the same expense rules as the IRS for ordinary business deductions, but keeps its own list of exceptions.
Real savings for a California LLC come from state-specific credits instead of federal deductions like the one above. The PTE elective tax credit covered earlier is the main one available to LLC owners taxed as partnerships or S-corps.
FAQs
Do All California LLCs Pay the $800 Annual Tax?
Yes, all California LLCs pay the $800 annual tax, active or not. The first-year exemption from AB 85 expired for LLCs formed on or after January 1, 2024.
Does a Single-Member LLC File Its Own California Tax Return?
Yes, a single-member LLC does file its own California tax return, Form 568, with the FTB every year. Federally, though, it typically has no separate return, since its income and expenses go straight onto the owner's Schedule C.
What Is California's Pass-Through Entity Tax Election?
California's pass-through entity tax election lets a qualifying partnership or S-corp pay tax at the entity level and pass a matching credit to its owners. Once made for the year on a timely filed return, the election is locked in and binds every partner, member or shareholder, consenting or not.
Do California LLCs Pay a Separate State Self-Employment Tax?
No, California LLCs don't owe a separate state self-employment tax beyond the federal 15.3% rate. Earnings run through the personal income tax brackets instead, and you cover the state's share yourself with Form 540-ES payments since nothing is withheld automatically.
References:
- https://www.ftb.ca.gov/forms/2025/2025-540-tax-rate-schedules.pdf
- https://www.ftb.ca.gov/forms/2025/2025-540-es-instructions.html
- https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
- https://www.irs.gov/faqs/estimated-tax
- https://edd.ca.gov/en/payroll_taxes/rates_and_withholding/
- https://www.cdtfa.ca.gov/taxes-and-fees/sales-use-tax-rates.htm
- https://www.ftb.ca.gov/file/business/credits/pass-through-entity-elective-tax/index.html
