What Tax Forms Do I File for a California LLC? (Full Guide)
The tax forms required for a California LLC depend on how the business is taxed — single-member LLCs file Form 568, multi-member LLCs file Schedule K-1 in addition to that, and LLCs electing corporate status file Form 100 or 100S.
As a corporate attorney with over 10 years helping business owners structure and register LLCs in California, I've guided clients through each of these filing paths. Here's what you need to know to stay compliant with the Franchise Tax Board.
Quick Summary:
- Filing the wrong form — or missing one entirely — can trigger a late filing penalty of 5% per month on unpaid tax, up to a maximum of 25%, according to the California Franchise Tax Board.
- The California employer tax rate of 3.4% is according to the California Employment Development Department (EDD).
- According to the IRS Fiscal Year 2024 Data Book, businesses filed approximately 33.7 million employment tax returns in fiscal year 2024 [1].
Tax Forms a California LLC Should File
The tax forms a California LLC should file will depend on the business structure and organization of the company.
Here are the following tax forms that need to be filed:
1. Tax Forms for a Single Member LLC in California
The single-member LLC in California is treated as a disregarded entity by the IRS. It must file Form 568 (LLC Return of Income), which details the company's financial activity for the year. Additionally, we had to file Form FTB 3522 (LLC Tax Voucher), and pay an $800 franchise tax for a California company [2].
If your LLC's annual gross sales exceed $250,000, you will be required to pay an additional franchise tax.
Read our article for more information about the costs of starting an LLC in California.
2. Filing taxes for a Multi-member LLC
A business in California with multiple members is treated as a partnership for tax purposes.
This means that each member must report their share of profits on a separate Schedule K-I (568), Partner's Share of LLC's Income, Deductions, Credits, etc., filed with the member's California personal income tax return.
Like single-member LLCs in California, multi-member LLCs need to pay their franchise tax to the California Franchise Tax Board.
3. Tax returns for an LLC Corporation in California
Single-member and multi-member LLCs in California can opt to be taxed as a corporation by filing Form 2553 with the IRS.
An LLC opting to be taxed as a C corp should file Form 100 whereas an S corporation classification needs to submit Form 100S to the California Franchise Tax Board [3, 4].
"While some people might find it distasteful to pay taxes, I don't. I find it patriotic."
- Mark Cuban, American Businessman & Film Producer
Keep in mind that there's a difference between an S corporation and a C corporation in how they pay the taxes.
You pay federal income tax on your C corporation profits, as well as any money you earn as a business owner or employee. The owners of S corps, on the other hand, report the LLC's revenue on their personal tax returns as personal income.
Most business owners I am acquainted with prefer an S corp tax status to avoid double taxation.
Pass-Through Entity Elective Tax for California LLCs
If your LLC has multiple members or is taxed as an S corporation, you can choose to pay California income tax as a business rather than having each member pay it individually. This is called the Pass-Through Entity (PTE) tax.
You opt in each year by filing FTB 3804 with your LLC's tax return — and once you do, that decision is locked in for that year. The tax rate is 9.3% of the LLC's net income.
The payoff: each member gets a California tax credit for their share of what the business paid, which can save money if your federal state tax deduction is capped at $10,000. This option is available through 2030 under a law California signed in June 2025 [5].
Employer Taxes
If your business entity has employees, you must withhold and pay employment taxes that cover Social Security and Medicare.
Employer taxes are payable to the California Employment Development Department (EDD) after completing your registration, either online or through Form DE-1.
According to the IRS Fiscal Year 2024 Data Book, businesses filed approximately 33.7 million employment tax returns in fiscal year 2024.
Withholding taxes are paid every quarter through Forms DE-88ALL and DE-9.
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FAQs
What Is the Minimum Tax for a California LLC?
The minimum tax for a California LLC is $800 which covers annual franchise tax. You may also be required to pay other state taxes, such as sales and use tax or excise tax. For more information, consult the California Franchise Tax Board's website.
Do You Have to Pay Taxes on a Foreign LLC in California?
You have to pay taxes on a foreign LLC in California for $800. The tax can be filed and paid online, and you will receive a confirmation number for your records.
References:
- https://www.irs.gov/newsroom/irs-releases-fiscal-year-2024-data-book-describing-agencys-activities
- https://www.ftb.ca.gov/file/business/types/limited-liability-company/single-member-llc.html
- https://www.ftb.ca.gov/file/business/types/corporations/c-corporations.html
- https://www.ftb.ca.gov/file/business/types/corporations/s-corporations.html
- https://www.ftb.ca.gov/file/business/credits/pass-through-entity-elective-tax/index.html
