Understanding the California Franchise Tax Due Dates for LLCs, LPs, LLPs, C-Corporations, and S-Corporations

Understanding the California Franchise Tax (800 tax) due dates for different business structures is essential for compliance and tax planning. This article will provide a comprehensive guide, including due dates for LLCs, limited partnerships (LPs), limited liability partnerships (LLPs), C-corporations, and S-corporations.

LLCs

For new LLCs in California or out-of-state LLCs registering with the California Secretary of State (SOS), the 800 franchise tax is due on the 15th day of the 3rd month after the establishment or registration. This is a non-refundable tax that needs to be paid ahead of time. For instance, if an LLC is created on March 1, 2020, the 2020 franchise tax is due by June 15, 2020.

The due date for subsequent tax years is the 15th day of the 4th month after the tax year end. If the fiscal year of the LLC ends on December 31, 2020, the 2021 franchise tax would be due on April 15, 2021.

It's important to note that if the LLC elects to be treated like a C-corporation, it follows the C-corporation rules regarding tax payments.

LPs and LLPs

The due date for LPs and LLPs is always the 15th day of the 4th month after the tax year end, even in the first year in California. Unlike LLCs, LPs and LLPs are required to pay the 800 after the end of their tax year.

C-Corporation

For C-corporations, there are some unique rules. If it's the first year of a corporation, no franchise tax is due even if there is no taxable income. However, in the second year, if there is no taxable income, the 800 franchise tax is due on the 15th day of the 4th month after the year end.

Furthermore, if a corporation is dissolved and has 15 days or fewer in its tax year, no franchise tax is due, regardless of taxable income.

S-Corporation

For S-corporations, the minimum franchise tax is due on the 15th day of the 3rd month after the year end. California has several rules that define who within the S-corporation structure pays and who does not.

It's crucial for businesses to stay informed about their tax responsibilities and due dates to avoid penalties and maintain compliance with California tax laws.