California LLC fee schedule, in full
On top of the $800 annual tax, California charges LLCs a fee based on total income from California sources: essentially gross receipts. Profit doesn't matter: an LLC that loses money on $600,000 of California sales pays the same fee as one that clears $300,000.
| California total income | Fee | + $800 = total |
| Under $250,000 | $0 | $800 |
| $250,000 – $499,999 | $900 | $1,700 |
| $500,000 – $999,999 | $2,500 | $3,300 |
| $1,000,000 – $4,999,999 | $6,000 | $6,800 |
| $5,000,000 or more | $11,790 | $12,590 |
The fee is set by tier, so one dollar over $1,000,000 moves the fee from $2,500 to $6,000. Per-tier pages: $900, $2,500, $6,000, $11,790.
What counts as “total income”
The statute uses “total income from all sources derived from or attributable to this state.” In practice that is gross income plus cost of goods sold, which adds back to gross receipts. Expenses, payroll, rent, and losses do not reduce it. Only California-sourced amounts count, which is why an out-of-state LLC with modest California sales may owe little or no fee even with large total revenue.
The sourcing rules follow California's apportionment rules: goods delivered to California customers and services whose benefit is received in California are California receipts. See apportionment factors for the details.
Schedule IW and single-member LLCs
The fee is computed on Schedule IW (LLC Income Worksheet) in the Form 568 instructions. A single-member LLC owned by an individual still files Form 568 and computes the fee there, even though its income flows to the owner's Form 540. Owners who only prepare their personal return often never see Schedule IW, and discover the missing fee years later in an FTB notice, with penalties.
Related entities can't split to duck a tier. If commonly controlled LLCs divide income mainly to lower the fee, the FTB can aggregate their total income and apply one tier.
Worked: $520,000 revenue, $12,000 loss
An LLC books $520,000 of revenue, of which $480,000 is from California customers, and ends the year $12,000 in the red. California total income is $480,000, which lands in the $250,000–$499,999 tier: $900 fee + $800 tax = $1,700, owed in full despite the loss. Had California receipts been $500,000, the fee would jump to $2,500.
Worked: $3,000,000 of California receipts
An e-commerce LLC with $3,000,000 of California sales pays $6,000 + $800 = $6,800 whether its margin is 5% or 50%. For a thin-margin business that fee can exceed what an S-corp would owe at 1.5% of profit See LLC vs S-corp with math. An LLC electing corporate or S-corp treatment files Form 100 or 100S instead and does not pay the § 17942 fee.
When it's paid
Estimate the fee and pay it by the 15th day of the 6th month of the tax year (June 15 for calendar years) on Form 3536. Paying less than the final fee triggers a 10% penalty on the shortfall: unless you paid at least last year's fee. The balance is due with Form 568. Estimate yours in the California calculator.