Another Tax Deadline Coming Up on June 17, 2013
CA Minimum Franchise Tax & CA Annual LLC Fee are Completely Separate Taxes. Who is Required to Pay Both?
In California, limited partnerships, corporations, S corporations and LLCs must all pay the annual minimum franchise tax of $800; this is the payment was due by April 15th.
IN ADDITION, an LLC not classified as a Corporation (i.e. partnerships, sole prop) must pay an “annual LLC fee” if it is organized, doing business, or registered in California and has income of at least $250,000.
The annual LLC fee is based on Total Income derived from all sources NOT Net Profit. This is why this fee is also referred to as the “LLC Gross Receipts Tax.” For calendar year LLCs, June 15 is the date the estimated LLC fee is due (if date falls on weekend, payment is due following Monday). For fiscal year LLCs, the estimated fee is due on the 15th day of the sixth month of the current taxable year.
If the LLC owes an estimated fee, complete Form 3536 and mail payment to the Franchise Tax Board. You may also make payments online using Web Pay for Businesses.
|Total Income||LLC Tax||LLC Fee||Total CA Taxes|
|Less then $250K||$800||$0||$800|
|$250,000 – 499,999||$800||$900||$1,700|
|$500,000 – 999,000||$800||$2500||$3,300|