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Quarterly Estimated Taxes for California LLC Owners

California LLC owners must make quarterly estimated payments to BOTH the IRS (federal) and the California Franchise Tax Board (state). California is particularly strict about underpayment penalties. For the complete picture, see our CA LLC tax guide.

What You Owe Quarterly

Payment To Whom When Due
Federal estimated (income + SE tax) IRS Apr 15, Jun 15, Sep 15, Jan 15
California estimated FTB Apr 15, Jun 15, Sep 15, Jan 15

California's Strict Rules

Safe harbor: Pay at least 100% of prior year's tax (or 110% if AGI over $150K/$1M) in 4 equal installments.

Penalty: California's underpayment penalty rate is typically higher than the federal rate. The FTB is aggressive about assessing penalties.

Rule of thumb: Set aside 35-45% of net profit for combined federal + California taxes.

How to Pay

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California FTB: https://www.ftb.ca.gov/ > Make a Payment (Web Pay) > Select "Estimated Tax" > Form 540-ES IRS: irs.gov/payments > Direct Pay > Select "Estimated Tax"

FAQ

How much should a California LLC owner set aside?

For a member in the 9.3% CA bracket + 24% federal bracket + 15.3% SE tax: approximately 40-45% of net LLC profit. California's high state rate pushes the total set-aside higher than no-income-tax states (where 25-30% is typical).

Does the $800 franchise tax count toward estimated payments?

No. The $800 is paid separately via Form 3522. Your quarterly estimates are for income tax only (Form 540-ES for personal CA income tax).

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