California LLC Annual Compliance Calendar: What to File, When, and What Happens If You Miss It

Article

Once a California LLC is formed, the ongoing compliance is the part that matters. Miss the $800. Miss the Statement of Information. Miss Form 568. The penalties stack and the LLC eventually gets suspended. Here is the complete compliance calendar — what is due, when, where, with what fee, and what happens if you skip it.

ByTaylor Darcy, Esq.· California-licensed attorney · State Bar No. 317674

Founding attorney atThink Legal, P.C.· San Diego–based, statewide California practice focused on LLC formation and operating agreements.

Published April 27, 2026

In this article

• The annual calendar at a glance
• First-year obligations
• Annual: $800 minimum franchise tax (FTB Form 3522)
• Annual: California Form 568 (LLC return)
• Annual: FTB Form 3536 (income-based fee, if applicable)
• Biennial: Statement of Information (Form LLC-12)
• Annual: Federal income tax return
• Quarterly: California sales tax (if applicable)
• Quarterly: Federal and California payroll taxes (if employer)
• Annual or biennial: Local business license
• Other obligations to be aware of
• What happens when filings are missed
• Common questions
• Related reading

Most California small business owners think the hard part of forming an LLC is the formation itself. The Articles of Organization, the operating agreement, the EIN — get those done and you are set.

That is half right. Formation is one event.Compliance is forever.And the most common way California LLCs end up suspended, penalized, or carrying thousands of dollars in back fees is not because formation was done wrong — it is because the recurring compliance calendar got missed.

This article is the reference for staying in good standing. Every filing California requires of an LLC, every deadline, every fee, every consequence for missing it, all in one place. Plain-English orientation, not legal advice for your specific situation. Most CPAs handle the federal and California tax filings for their LLC clients; the question is whether they handle every line item or whether some are the owner’s job. Confirm with your CPA which is which — gaps in coverage are where compliance fails.

The annual calendar at a glance

For most California LLCs on a calendar tax year, the recurring obligations break down like this:

The first-year obligations are different — see below.

First-year obligations

Newly formed California LLCs face a slightly different calendar in their first year. The key first-year items:

Initial Statement of Information.Due within90 daysof LLC formation. Filed with the California Secretary of State on Form LLC-12. The fee is $20. This is the first compliance deadline most new LLCs face, and one of the most commonly missed. (SeeCalifornia Statement of Informationfor the deeper treatment.)

First $800 minimum tax payment.Due the15th day of the 4th monthafter the LLC’s taxable year begins. For an LLC formed mid-year, the taxable year typically begins on the date of formation. So an LLC formed on May 15 has its first $800 due August 15 of the same year. The first-year exemption that existed for LLCs formed in 2021–2023 has expired — LLCs formed in 2024 and later owe the full $800 in their first year. (SeeThe $800 California LLC Taxfor the underlying rule.)

EIN application.Generally done immediately after formation. Free, online through the IRS. Not a recurring obligation, but a first-year setup item. (SeeCalifornia LLC EIN.)

First-year operational compliance.Bank account in the LLC’s name, operating agreement signed, LLC records started, business licenses obtained as applicable. None of these have a state-set deadline, but they are foundational for the LLC’s separate legal existence (which supports liability protection — seePiercing the LLC Veil in California).

After the first year, the calendar settles into the recurring pattern.

Annual: $800 minimum franchise tax (FTB Form 3522)

Due:April 15 each year (for calendar-year LLCs, after the first year).

Fee:$800.

Where:Filed with the Franchise Tax Board, online through the FTB’s website or by mail.

What happens if you miss it:Penalty (typically a percentage of the tax due) plus interest at the FTB’s published rate. After extended non-payment, the FTB can suspend the LLC’s powers — meaning the LLC cannot legally enter contracts, sue, or transact business until reinstated.

The catch:The $800 is owed every year regardless of whether the LLC made money, lost money, or did anything at all. Inactivity does not reduce it. The only way to stop owing the $800 going forward is formal dissolution. (SeeHow to Dissolve a California LLC.)

Annual: California Form 568 (LLC return)

Due:April 15 each year (calendar-year LLCs).

Fee:No filing fee for the return itself; any tax due is paid with the return.

Where:Filed with the Franchise Tax Board.

What it is:California’s LLC return, used by every LLC doing business in California. Reports the LLC’s California-source income, allocates income to members for partnership-classified LLCs, and confirms the $800 minimum and any additional fees.

What happens if you miss it:Late filing penalties accumulate (typically a per-month penalty plus interest). The FTB takes filing seriously even when no income is reported. Failure to file is one of the conditions that leads to suspension of the LLC’s powers.

The interaction with Form 3522:The $800 minimum is paid on Form 3522 separately (typically by April 15). Form 568 is filed annually and reconciles the LLC’s California tax picture, including any income-based fee owed and any tax due beyond the $800 minimum.

Annual: FTB Form 3536 (income-based fee, if applicable)

Due:June 15 (estimated payment).

Fee:Tiered, based on California-source income:

• $0 to $249,999: no fee
• $250,000 to $499,999: $900
• $500,000 to $999,999: $2,500
• $1,000,000 to $4,999,999: $6,000
• $5,000,000 or more: $11,790

Where:Filed with the FTB.

What it is:California’s income-based fee under RTC §17942, in addition to the $800 minimum. Applies to LLCs with substantial California-source income.

What happens if you miss it:Underpayment penalties and interest. The actual tax owed is reconciled on Form 568 at year-end, but estimated payments are due in advance.

Most new LLCs do not encounter this in early years.It applies once the LLC’s California income crosses $250,000 — a threshold most small businesses cross only after meaningful growth.

Biennial: Statement of Information (Form LLC-12)

Due:Initial filing within 90 days of formation; biennial filings thereafter, due by the last day of the LLC’s formation month every other year.

Fee:$20.

Where:Filed with the California Secretary of State, online through the bizfile portal.

What it is:A public filing that updates California’s records on the LLC’s address, management, agent for service of process, and basic information.

What happens if you miss it:

• $250 penalty per missed filing (Cal. Corp. Code §17713.07)
• Suspension of the LLC’s powers if the LLC fails to file for an extended period
• Costly reinstatement process if the LLC is suspended

This is one of the most-missed filings for DIY-formed LLCs because it is a Secretary of State filing rather than a tax filing — and CPAs often do not handle it. (SeeCalifornia Statement of Informationfor the full treatment.)

Annual: Federal income tax return

Due:Varies by tax classification:

• Single-member LLC, default tax treatment:Schedule C with the owner’s personal return, due April 15
• Multi-member LLC, partnership tax treatment:Form 1065, due March 15 (with K-1s issued to members)
• LLC with S-corp election:Form 1120-S, due March 15
• LLC with C-corp election:Form 1120, due April 15

Fee:No filing fee; any tax due is paid with the return.

Where:Filed with the IRS.

What happens if you miss it:IRS late filing penalties, interest on unpaid tax, and (for partnership and S-corp returns) per-K-1 penalties that can be substantial.

Most LLCs use a CPA for this.Single-member LLCs on Schedule C are sometimes self-prepared by the owner. Multi-member LLCs almost always use a CPA, because Form 1065 and K-1 generation involves more complex calculations.

Quarterly: California sales tax (if applicable)

Applies to:LLCs that sell tangible goods, certain services, or otherwise have California sales tax collection obligations.

Due:Quarterly or monthly, depending on the LLC’s volume and the CDTFA’s filing schedule.

Fee:Tax collected from customers; the LLC remits the tax to CDTFA.

Where:Filed with the California Department of Tax and Fee Administration (CDTFA).

What happens if you miss it:Penalties, interest, and (for substantial non-compliance) loss of seller’s permit.

Most service businesses are not affected.Sales tax applies to retail and wholesale sales of tangible goods primarily. Service businesses (consulting, professional services, most online services) generally do not collect California sales tax.

Quarterly: Federal and California payroll taxes (if employer)

Applies to:LLCs with W-2 employees.

Federal payroll filings:

• Form 941quarterly, reporting withheld income tax, Social Security, and Medicare
• Form 940annually, reporting federal unemployment tax
• W-2sannually to employees by January 31

California payroll filings:

• DE 9andDE 9Cquarterly, reporting California withholding and unemployment tax
• DE 4as needed for new employees

Where:IRS for federal; EDD (Employment Development Department) for California.

What happens if you miss it:Substantial penalties on payroll filings, plus personal liability for “responsible persons” who fail to remit withheld payroll taxes. Payroll tax non-compliance is one of the few situations where individual managers and members can be personally liable regardless of LLC structure.

Most LLCs with employees use a payroll provider.Gusto, Rippling, ADP, and similar services handle the filings as part of their service. The cost is well-justified for the compliance burden it removes.

Annual or biennial: Local business license

Applies to:Most LLCs operating from a physical location in California.

Due:Varies by city or county. Most California cities require an annual or biennial business license renewal.

Fee:Varies widely — $50 to several hundred dollars depending on jurisdiction and business type.

Where:City or county business license office.

What happens if you miss it:Local penalties, possible suspension of the right to do business in that city, and potential issues with state-level compliance if the LLC’s local presence is documented inconsistently.

This is the line item most often forgotten.State and federal compliance get attention from CPAs; local business licenses are usually the owner’s responsibility, and they are easy to overlook.

Other obligations to be aware of

A few less-frequent but real obligations:

California Workers’ Compensation Insurance.If the LLC has employees, workers’ comp coverage is required. There is no state-issued “filing” — the obligation is the policy itself, maintained through a private insurer.

Industry-specific licensing and reporting.Contractors (Contractors State License Board), real estate brokers (DRE), professional licenses (varies by profession), liquor licenses, food service permits, etc. Each has its own renewal schedule and consequences.

Beneficial Ownership Information (BOI) filings under federal law.As of 2024, federal law (the Corporate Transparency Act) requires most LLCs to file Beneficial Ownership Information reports with FinCEN. Initial reports are due 30–90 days after formation depending on date of formation; updates are required when ownership or beneficial ownership changes. Confirm current status of this filing with your attorney or CPA — this requirement has been subject to legal challenges and timing changes since 2024.

Renewals of registered agent service.If the LLC uses a third-party registered agent, the service is renewed annually. Letting the agent service lapse can cause the LLC to lose its agent designation and trigger Secretary of State action.

What happens when filings are missed

The compliance failure pattern usually goes like this:

Year 1:A filing is missed. Penalty is assessed.

Year 2:Same filing is missed again, possibly more filings. Penalties accumulate. Notices may go to outdated addresses (especially if the registered agent or principal address has changed and the Statement of Information is one of the missed filings). The owner may not see the notices.

Year 3:The LLC is suspended by either the FTB or the Secretary of State. The LLC cannot legally enter contracts, sue, defend itself, or transact business. Owners often discover the suspension when they try to take some action (sign a lease, sue for non-payment, sell the business) and find out the LLC has been suspended.

Reinstatement:Bringing the LLC current requires:

• Filing all missed Statements of Information ($20 each plus $250 penalty each)
• Paying back $800 minimums for each year ($800 plus penalties and interest each)
• Filing back Form 568s for each missed year
• Obtaining a Certificate of Revivor from the FTB if tax-suspended
• Paying any other accumulated penalties and interest

Total reinstatement cost for a multi-year-suspended LLC is often in the$5,000–$15,000 rangefor a problem that started with a $20 filing or an $800 payment.

The math is brutal. The compliance calendar is meant to prevent this, and the cost of staying in compliance ($800/year minimum, $20 every two years, plus tax-prep) is small compared to the cost of falling behind.

Common questions

Does my CPA handle all of this?Most CPAs handle federal and California tax filings (Form 568, 1065/Schedule C/1120-S, $800 minimum, income-based fee, Form 3522 and 3536). Most donothandle Statement of Information (a Secretary of State filing), local business licenses, BOI reports, payroll, or sales tax (unless they specifically include it). Confirm scope with your CPA — gaps in coverage are where compliance fails.

What if my LLC is inactive — do I still owe everything?The $800 minimum still applies regardless of activity. The Statement of Information is still due. Form 568 is still required (with no income reported). Sales tax and payroll only apply if the activities are happening. Inactivity does not eliminate state obligations.

Can I bring an LLC back from suspension?Yes. The reinstatement process is mechanical but expensive. File the back Statements of Information, pay the back $800s and penalties, file the back Form 568s, get a Certificate of Revivor from the FTB if tax-suspended, and the LLC is restored. The reinstatement is more expensive than ongoing compliance would have been but is the only path back.

What if I am moving the LLC’s address?File an updated Statement of Information promptly. Failure to keep the registered address current is one of the ways notices fail to reach the LLC and compliance falls behind.

What if I am closing the LLC?Formal dissolution is the only way to stop the $800 meter. (SeeHow to Dissolve a California LLCfor the full process.) Until the LLC is formally dissolved, all annual obligations continue to apply.

Does the calendar change for an LLC owned by a trust?No. The trust owns the LLC interest, but the LLC’s own compliance obligations are unchanged. (SeeCalifornia LLC vs. Trust for Estate Planningfor the trust-LLC structure.)

What is the single most important thing to remember?For a California LLC: pay the $800 by April 15. File the Statement of Information by the formation-month deadline every two years. Everything else flows from a good CPA relationship. Most owners who get those two right and have a CPA handling the tax filings stay in good standing without much further effort.

Related reading

• California LLC Formation— flat-fee attorney-assisted formation that gets the first-year compliance items handled correctly
• The $800 California LLC Tax— the cornerstone of California’s annual LLC compliance
• California Statement of Information— the most-missed Secretary of State filing
• How to Dissolve a California LLC— the only way to stop the recurring compliance obligations
• California LLC EIN— the federal tax ID needed for first-year setup
• Piercing the LLC Veil in California— the operational habits that complement compliance for keeping the LLC’s separate existence intact