California LLC Franchise Tax Calculator
AB 85's first-year exemption is gone — but a new $400 first-year rate applies to LLCs whose first taxable year begins in 2027-2029. Here's what you actually owe, and when.
A California LLC owes $800 a year — except its first taxable year is $400 if that year begins in 2027, 2028 or 2029. LLCs formed through 2026 (and from 2030 on) pay the full $800 in year one, and every LLC pays $800 from year two. This is separate from the additional gross receipts fee that applies once your California income passes $250,000.
Enter your formation date and estimated California income to see exactly what you owe and when.
LLC Franchise Tax Calculator
Your LLC Tax Obligation
First-Year Annual Tax
Gross Receipts Fee
How this is calculated
Every California LLC — regardless of income, or whether it did any business at all — owes an annual tax of $800 (Revenue and Taxation Code §17941). The AB 85 waiver that skipped this tax entirely in an LLC's first year only covered entities that organized or registered in 2021 through 2023, and it has expired.
The 2027-2029 first-year reduction
A separate 2026 amendment to §17941(g) reduces the tax to $400 for an LLC's first taxable year only when that year begins on or after January 1, 2027 and before January 1, 2030; because a new LLC's first taxable year begins on its formation date, the tool checks your formation date against that window.
From the second taxable year on, it is $800 every year. Corporations have their own permanent first-year minimum-tax exemption (§23153(f)) that expressly excludes LLCs, which is why the two get conflated online.
When the tax is due
The tax is due the 15th day of the 4th month of the taxable year, counting the month it begins as month one — so an LLC that begins June 1 pays by September 15, and one that begins in January pays by April 15 — and a date that lands on a weekend moves to the next business day.
The gross receipts fee
Separately, once your total California income reaches $250,000 for the year, an additional graduated gross receipts fee applies: $900 ($250K-$499,999), $2,500 ($500K-$999,999), $6,000 ($1M-$4,999,999), or $11,790 ($5M+). That fee is a completely separate charge and is not reduced by the 2027-2029 rule. This calculator assumes a calendar-year LLC.
Frequently Asked Questions
How much is the first-year tax for a new California LLC?
It depends on when the LLC's first taxable year begins. For a first taxable year beginning January 1, 2027 through December 31, 2029, the annual tax is $400 (Revenue and Taxation Code section 17941(g)). For a first taxable year beginning before 2027 (including LLCs formed 2024-2026) or in 2030 or later, it is the full $800. From the second year on, it is $800 every year. The separate gross receipts fee is not reduced.
Is the old AB 85 first-year LLC exemption back?
No. AB 85's full first-year waiver only applied to LLCs that organized or registered between January 1, 2021 and December 31, 2023, and it has expired. The 2027-2029 rule is a different, smaller thing: a reduction of the first-year tax to $400, not a waiver.
When is a new LLC's first annual tax payment due?
By the 15th day of the 4th month of the LLC's first taxable year, counting the month the year begins as month one. For example, a first taxable year beginning June 1 has its tax due September 15, and one beginning in January is due April 15. A due date on a weekend or holiday moves to the next business day. After the first year, the tax is due every April 15 for a calendar-year LLC.
What is the LLC gross receipts fee, and is it the same as the annual tax?
No, they're two separate charges. Every LLC owes the annual tax regardless of income. On top of that, once an LLC's total California income reaches $250,000, a separate graduated fee applies — $900 at $250K-$499,999, $2,500 at $500K-$999,999, $6,000 at $1M-$4.99M, and $11,790 at $5M or more. The 2027-2029 first-year reduction does not change this fee.
Why do corporations get a first-year waiver but LLCs don't?
Revenue and Taxation Code section 23153(f) exempts a newly incorporated corporation from the minimum franchise tax for its first taxable year, and expressly excludes LLCs, limited partnerships and LLPs from that exemption. LLCs only get the separate, smaller 2027-2029 first-year reduction.
What happens if an LLC doesn't pay the annual tax?
The FTB can assess a late payment penalty plus interest, and continued non-payment can lead to suspension of the LLC's ability to do business in California, including losing the right to sue or defend itself in California courts until back taxes are paid.
This tool provides an educational estimate only and is not tax advice. Confirm your exact due dates and amounts with the Franchise Tax Board (FTB) or a licensed CPA.