California LLC Annual Report
LLCs formed in California need to file this statement with the California Secretary of State each and every year. i.e., annually. Read about how to file this statement.
File report online
Visit the official state government’s website to submit statement of information online.
Visit California official website
What is an LLC?
Limited Liability Company
LLC is a business entity in the U.S that provides limited liability to its members. It has characteristics from both corporation and sole proprietorship. LLCs are permitted under State statutes of each US state.
Limited liability
Personal assets are protected for people with limited liability when they are sued.
Corporation
A business entity that can issue shares and give limited liability to shareholders.
Members
Owners of an LLC are referred to as members. They own membership interest in the LLC.
Sole proprietorship
Where an individual engages in business activity without formal organization.
Why file the report?
California LLC Biennial Report
Biennial report is used to keep an LLC’s information up to the date with the State.
Filed once in 2 years
Every registered entity must file this report once every 2 years.
Update your business information
You can change your Company address, Names and addresses of LLC members or managers and Principal business activity by updating it on the biennial report when it is due.
File by mail, in-person or online
Biennial reports can be filed by mail, in-person or online.
Agent for service of process
On the statement of information, you may make any necessary updates or changes in Agent for Service of Process. No further filing cost is required.
California actions
Here are some of the actions business owners can take in California:
How to file Annual Report in California ?
Follow these steps:
1. Find forms applicable to your LLC and file
Reports that need to be filed in California are: biennially - statement of information, annually - LLC return of income and schedule R (apportionment and allocation of income). California LLCs also have to pay annual taxes and LLC fees, yearly.
The statement of information keeps the state updated on the details of an LLC. There are three types of Statement of Information, only file any one based on which is applicable to your LLC : 1. First-time filing: initial statement, due within 90 days of registration 2. Subsequent filing: statement of information, to be filed biannually after first filing, before the anniversary date (date article of organization was approved) 3. No changes in the LLC from the last filing: file a statement of no change, file instead of the statement of information If your LLC has more than one manager or member, also file 'attachment to statement' of information
Due
biennially
Fee
$20
LLC Return of Income summarizes your LLC’s financial activity during a taxable year. File Form 568 online by the return due date (15th of March or April).
Due
annually
Schedule R (apportionment and allocation of income), to be filed by businesses that have income outside California. Apportionment is done to divide business income to ascertain income from California. This is done using the apportionment formula, there are two formulae: single-sales factor and three-factor
Due
annually
Single-sales factor: to be used by all businesses except where more than 50% of their gross receipts are from qualified business activities (QBA). Three-factor: to be used when more than 50% of their gross receipts are from qualified business activities (QBA) QBAs are business activities that are agricultural, extractive, savings and loan, banking or financial
2. Pay annual tax and fees
California LLCs have to pay a flat annual tax, no matter the revenue until the business is cancelled. It's due by the 15th of the fourth month of filing with the state when paying the first time; subsequently due by the 15th day of the fourth month of the taxable year. E.g. if LLC formation date is June 2nd, then due by Sep 15th. LLCs that are formed between 2021 and 2024 have a waiver of the annual tax in the first year. It can also be waived off if the business is canceled within the first year of forming, by filing a short form.
LLCs that have revenue of more than $250,000 have to pay LLCs fees based on a schedule depending on the revenue, file this form only if your revenue exceeds this threshold. Fees are due by the 6th month after the beginning of the tax year.
Articles of Organization
In California, Articles of Organization is the form you file with the Secretary of State to form an LLC. It contains the articles of formation for the LLC.
Filing Articles of Organization
There are a couple of ways to file
Address
Secretary of State
Business Entities Filings
P.O. Box 944228
Sacramento, CA 94244
Online fee
$0
Online processing time
5 days
Mailing fee
$0
Mail processing time
5 days
Annual report
There are 3 types of reports to file annually for California LLCs: Statement of Information, LLC return of income, Schedule R (Apportionment and allocation of income). Additionally, California annual tax and LLC fees must be paid as well.
Statement of Information
This is a mandatory filing that keeps the state updated on the entity’s participants like registered agent, members and other details of the entity. There are three types of Statement of Information (file any one)- initial statement, due in 90 days of registration (first time filing); Statement of Information, to be filed biennially thereafter, before the anniversary date; Statement of No Change, file instead of Statement of Information if there are no changes since last filing.
Address
Secretary of State
Business Programs Division
Business Entities
1500 11th Street, Sacramento, CA 95814
P.O. Box 944260, Sacramento, CA 94244-2600
Note
Anniversary date is the date on which the articles of organization was approved by the state
LLC Return of Income
LLC Return of Income summarizes your California LLC’s financial activity during a taxable year. File Form 568 online by the return due date (15th of March or April).
Schedule R - Apportionment and allocation of Income
If you have income or loss inside and outside California, you use this form to determine your California source income.
Annual tax
California LLCs have to pay annual taxes until it's cancelled, even if not in business, regardless of revenue. This is a flat tax which is due by - 15th of the fourth month of filing with the state, when paying the first time; subsequently due by 15th day of fourth month of taxable year. E.g. if LLC formation date is June 2nd, then due by Sep 15th.
LLCs registering between Jan, 2021 to Jan, 2024 don't have to pay annual tax in the first year
If LLC is cancelled within 1st year of forming, annual tax is waved off
Mail waiver form
Fee
$800
Due
annually
LLC Fee
LLCs that make more than $250,000 have to pay LLCs fees based on a schedule depending on the revenue of your LLC, file this form only if your revenue exceeds this threshold. Fees are due by the 6th month after the beginning of the tax year.
Fee schedule based on revenue
Visit
Address
Franchise Tax Board,
PO Box 942857,
Sacramento CA 94257-0531
Fee
varies
Entity name
Every LLC should have a unique name in California. California maintains a list of names of entities in the state. Go through it to check if your chosen name is available.
Search for names
Go to the official website of the California business search tool to see if the name you want is available.
Searching fee
Free
Reservation
You can reserve a name for your LLC for a specific duration by paying reservation fees to the California business entities. You will have to file your LLC formation documents within this period to keep the name. Alternatively, you can directly go ahead with the LLC formation without any reservation. That's fine too.
Reservation fee
$10
Reservation period
60 days
LLC naming guidelines
The name you choose for your LLC must the official naming guidelines.
CCC §17701.08
Visit
Here are some of the guidelines in simple language:
- 1
Shall contain the words limited liability company, or the abbreviation L.L.C. or LLC. Limited may be abbreviated as Ltd., and company may be abbreviated as Co.
- 2
Don’t include terms that indicate that you are doing an activity that you are not authorised to do.
- 3
Your name should be ‘distinguishable’ in the Secretary of State records. Adding a punctuation or ‘the’ does not make it distinguishable.
- 4
Don’t use words that makes it seems like you are a governmental entity or has an affiliation.
Frequently asked questions
LLC Statement of Information in California
It is very important to maintain full compliance in California. Filing these reports helps you protect your personal assets by maintaining limited liability and also to be in good standing with the state. Read our guides to learn how to start and manage a business in California.
California LLC
California Business search