California's $800 LLC Franchise Tax, Explained

Every California LLC is subject to an $800 minimum annual franchise tax payable to the California Franchise Tax Board. As of Q2 2026, this obligation applies to all California LLCs regardless of whether the business earns any income or conducts any activity during the year. This tax is entirely separate from the filing fee paid to the California Secretary of State when the LLC is initially formed or when annual statements are submitted. The franchise tax is a recurring obligation that continues for as long as the LLC remains registered and active in California.

In addition to the flat $800 minimum, California imposes a gross receipts fee on LLCs whose total California-sourced income exceeds $250,000 in a given year. This additional fee is tiered and increases as income rises above that threshold. Both the minimum franchise tax and the gross receipts fee are administered by the Franchise Tax Board, not the Secretary of State, so they represent a distinct compliance track from standard state registration requirements.

It is worth noting that California's annual tax structure makes it one of the more costly states for ongoing LLC maintenance. By comparison, the dataset context for state filing fees shows that annual or biennial report fees across all states range from $0 in some states to $500 in others, with a median around $100. California's $800 floor sits well above that median when considered as a recurring cost of doing business.

Fee schedules and thresholds are subject to change at state fiscal-year boundaries, and figures here reflect general information as of Q2 2026. Readers should confirm all current fees, due dates, and threshold amounts directly with the California Franchise Tax Board and the California Secretary of State. This content is general information only and does not constitute legal or tax advice.

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Fee facts as of Q2 2026. How we compile and verify this data. Informational only — not legal or tax advice.