What is the annual cost of maintaining a LLC?
Although corporations and LLCs are both subject to an annual $800 California Franchise tax, only LLCs are also subject to an additional fee determined by the “gross receipts” of the company.
To do business in California, every LLC must pay an annual tax of $800. California Revenue and Taxation Code Section 17942 also requires that every LLC must pay an annual fee based on total gross revenue. Â Corporations, on the other hand, are not required to pay the gross receipts fee.
California LLC Fees
Annual Gross Receipts | Annual Fee |
less than $250,000 | $800 |
$250,000 to $499,000 | $800 + $900 |
$500,000 to $999,999 | $800 + $2,500 |
$1 million to $4,999,999 | $800 + $6,000 |
$5,000,000 or more | $800 + $11,790 |