After Forming Your California LLC — Compliance & Next Steps
Your Articles of Organization are filed. Now you must handle California's ongoing compliance requirements — which are more demanding than most states. The $800 annual franchise tax, biennial Statement of Information, and Form 568 return create annual obligations that cannot be ignored. For formation steps, see our CA LLC guide.
Immediate Steps (First 90 Days)
- File Statement of Information (Form LLC-12) within 90 days — $20 (MANDATORY)
- Get EIN — irs.gov (immediate)
- Open business bank account — bring Articles, EIN letter, operating agreement
- Pay first franchise tax — $800 due by the 15th day of the 4th month after formation
- Register with CDTFA — if selling taxable goods (seller's permit, free)
- Obtain business licenses — check city/county requirements
Ongoing Annual Obligations
| Obligation | Amount | Due | Filed With |
|---|---|---|---|
| Form 568 (LLC Return of Income) | Informational + $800 tax | March 15 (multi-member) or April 15 (single-member) | FTB |
| $800 franchise tax | $800 | April 15 (Form 3522) | FTB |
| LLC fee estimate (if applicable) | $900-$11,790 | June 15 (Form 3536) | FTB |
| Statement of Information (LLC-12) | $20 | Every 2 years in anniversary month | SOS |
| Maintain agent for service of process | Continuous | N/A | SOS |
What Happens If You Do Not Comply
Ready to get started?
Get StartedMissing SOI deadline: SOS imposes $250 penalty. Continued non-filing can lead to suspension.
Missing franchise tax ($800): FTB assesses penalties (5% per month up to 25%) plus interest. After extended non-payment, FTB suspends your LLC.
Suspension consequences:
- Cannot sue in California courts
- Cannot defend lawsuits
- Cannot transact business
- Cannot file documents with the SOS
- Veil protection may be compromised
- Revenue from operations during suspension may be subject to additional penalties
FAQ
What is the most critical ongoing obligation?
The $800 annual franchise tax. Missing it triggers suspension faster than any other compliance failure. Set a recurring April 15 reminder.
How long after formation before my first franchise tax is due?
15th day of the 4th month after formation. For LLCs formed in January: May 15 same year. The AB 85 first-year exemption expired after 2023 — LLCs formed in 2024 or later owe the $800 starting in their first taxable year.