If you’re LLC goes into existence in January, January is “month 1”, and the payment is due by April 15th. Most states refer to this as your LLC effective date, however, California used the term “future file date”. They both mean the same thing. There are 3 ways to use a future file date.

When is the 4th month of a California LLC?

As an example, if your California LLC was approved in November (on any day) of 2020, November is counted as “month 1”. So the “4th month” after that is February of 2021 (not March, which is what most people think).

When do you have to make California LLC tax payments?

The state’s terminology sounds like a riddle. The instructions on Form 3522 (Limited Liability Company Tax Voucher) say: Your first LLC annual franchise tax payment is due the 15th day of the 4th month after your California LLC is approved. The succeeding annual franchise tax payments are then due by April 15th every year.

When is the best time to file for a LLC?

There are 3 ways to use a future file date. It depends on how you’re forming your LLC: 1. If you’re forming your LLC online, you’ll see a “File Date” section. This is where you’d select January. Note, the date can’t be more than 90 days ahead.

How to register a limited liability company in California?

An LLC must have the same classification for both California and federal tax purposes. To register or organize an LLC in California, contact the Secretary of State (SOS): for more information. Every LLC that is doing business or organized in California must pay an annual tax of $800.

What’s the 15 day rule for a California LLC?

LLCs are basically subject to the same 15-day rule. According to FTB 3556, the $800 tax is waived if no business is conducted during the 15 days and the LLC is filed between December 17 and 31: The California Franchise Tax Board requires newly formed California LLCs to pay an $800 minimum tax within approximately 3 and a half months of formation.