A New California LLC's First Year: Three Payments Due Before You Earn a Dollar

A truck driver who registers a California LLC owes three things in the registration year: a Statement of Information within 90 days, the $800 annual tax by a date set by the registration month, and Form 568 filed with the personal return. None of the three depends on income. This week a driver who registered in July and started hauling in late August asked about them. His Statement of Information was done, and his $800 is due October 15. Here is how each one is calculated.

1. Statement of Information (Form LLC-12)

The first one is due within 90 days of registration, $20. Late filing draws a $250 penalty, assessed by the Secretary of State and collected by the Franchise Tax Board. After that it is due every two years, before the end of the registration month.

2. The $800 annual tax

Every California LLC pays $800 a year for as long as it exists, income or not.

The first payment is due on the 15th day of the 4th month, counting the registration month as month one. Register in July and it is due October 15; register in January and it is April 15; register in October and it is January 15 of the next year. After that, every April 15. The source is the FTB 3522 instructions: the tax is due "by the 15th day of the 4th month after the beginning of the LLC's taxable year," and "the first taxable year of an LLC begins when the LLC files its articles of organization with the SOS."

LLCs formed 2021 through 2023 got a first-year exemption. That expired, and LLCs formed now pay in year one. The following April 15 brings the next year's $800, so two payments land less than six months apart. This catches most first-year owners.

The only exception: an LLC registered after December 17 that does no business that year owes nothing for that year.

3. Form 568

Form 568 is the LLC's California return, filed alongside your personal return. For federal purposes a single-member LLC is disregarded: its income and expenses flow straight onto Schedule C of your personal 1040, so the two returns should be prepared together. Have checks made out to the company name and deposited to the company account; that is what keeps the liability shield intact. For what goes on the personal return, see A Truck Driver's First Tax Year: W-2 or 1099.

Two agencies, two websites

The $800 goes to the Franchise Tax Board (FTB) through Web Pay for Business at ftb.ca.gov/pay. The Statement of Information goes to the Secretary of State (SOS) at bizfileOnline.sos.ca.gov. Neither site handles the other item.

FAQ

My company was just registered and has not made money yet. Is the $800 still due?

Yes. California's $800 LLC annual tax does not depend on income. It is due in the registration year.

My LLC was registered in July. When is the first $800 due?

October 15. Count the registration month as month one: July, August, September, October, then the 15th. The next payment is April 15 of the following year.

What happens if the Statement of Information is late?

A $250 penalty. The first one is due within 90 days of registration, then every two years.

Are the $800 and the Statement of Information paid on the same website?

No. The $800 is paid to the FTB at ftb.ca.gov/pay. The Statement of Information is filed with the SOS at bizfileOnline.sos.ca.gov.

Can I avoid the first year's $800 by registering at year-end?

Yes, if you register after December 17 and do no business that year. Both Form 568 and the $800 are waived for that year. Registering in early December does not qualify.

This article is general tax information and is not tax, legal, or accounting advice for your individual situation. Confirm current rules with the IRS or consult a professional advisor such as Mingtu.