LLC Info (REV 04/2007)
LIMITED LIABILITY COMPANIES
California Tax Information
Registration of a limited liability company (LLC) with the California Secretary of State (SOS) will obligate an
LLC that is not taxed as a corporation to pay to the Franchise Tax Board (FTB) an annual minimum tax of
$800.00 and a fee based on the annual total income of the entity. The tax and fee are required to be paid for
the taxable year of registration and each taxable year, or part thereof, until a Certificate of Cancellation is filed
with the SOS. (Rev. and Tax. Code §§ 17941 and 17942.) An LLC is not subject to the taxes and fees
imposed by Revenue and Taxation Code sections 17941 and 17942 if the LLC did no business in California
during the taxable year and the taxable year was 15 days or less. (Rev. and Tax. Code § 17946.)
An LLC that is taxed as a corporation generally determines its California income under the Corporation Tax
Law commencing with Revenue and Taxation Code section 23001.
PLEASE NOTE: A domestic nonprofit LLC is a taxable entity and subject to the tax requirements stated above
unless the LLC has applied for tax-exempt status and the FTB determines the LLC qualifies for tax-exempt
status. Therefore, until such a determination is made, a nonprofit LLC must file a return and pay the
associated tax (and, if applicable, the fee) every year until the LLC is formally cancelled. If the LLC intends to
seek tax exempt status:
• At the time of filing its Articles of Organization with the SOS, the LLC must include, in an attachment to that
document, additional statements as required by the law under which the LLC is seeking exemption.
Please refer to the FTB’s Exemption Application Booklet (FTB 3500 Booklet) for information regarding the
required statements and for suggested language.
• After filing its Articles of Organization with the SOS, the LLC may apply for tax-exempt status by mailing an
Exemption Application (Form FTB 3500), along with an endorsed copy of the Articles of Organi