By: Tamara B. Pow
Even though we are not even halfway through the year, it is already time to pay your LLC gross receipts fee. LLCs classified as partnerships or disregarded entities are required to estimate their total annual income, and pay an estimated LLC fee by the 15 th day of the 6 th month of their taxable year (June 15 for calendar year LLCs). If you underestimate the fee, there is an underpayment penalty equal to 10% of the difference between the amount you paid and the amount actually due. There is no reasonable cause exception, but there is an exception for timely paying an amount equal to or greater than the LLC’s fee for the previous year. The LLC should use FTB Form 3536, Estimated Fee to remit the estimated fee payment.
The LLC Annual Fee is in addition to the $800 per year franchise tax. The amount of the Annual Fee is based on gross revenue of the LLC:
Gross Receipts | Annual Fee |
Less than $250,000 | $0 |
More than $250,000 but less than $500,000 | $900 |
More than $500,000 but less than $1,000,000 | $2,500 |
More than $1,000,000 but less than $5,000,000 | $6,000 |
More than $5,000,000 | $11,790 |
