In Calfornia, a Limited Liability Company (LLC)'s first annual LLC tax payment is due on the 15th day of the 4th month after the filing date.
Each year's subsequent filing is due on the 15th day of the 4th month of the end of the tax year, or April 15th for calendar year filing.
So, for example, if you filed a new LLC on November 10th, the following year you would owe $800 on March 15th and another $800 on April 15th.
The LLC must pay the minimum franchise tax to the California Franchise Tax Board, even if it is non-operational. California has a minimum franchise tax of $800 on all LLCs that are taxed as partnerships (i.e. pass through taxation). This applies to foreign and domestic California LLCs.
Failure to timely pay may result in penalties, fees, and interest.
Eventually, the FTB will suspend an LLC which fails to file one or more tax returns and/or which fails to pay the business' balance due.
Frank W. Chen is licensed to practice law in the State of California. The information presented here is general in nature and is not intended, nor should be construed, as legal advice. This posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, consult your own attorney.
I don't recall whether a late notice is sent, but you will be assessed a late fee, and your entity will be subject to suspension, and the process to revive your active status is a transactional burden.
When your payment is not received by the due date, California assesses a late fee and your tax account is suspended. Also, the secretary of state is notified and your entity becomes administratively suspended. You then have two administrative issues to rectify.
When you're suspended, you have to proactively seek reinstatement with the franchise tax board and the secretary of state. Merely paying the franchise tax will not revive your entity and restore things to their natural order. I know there is a form to complete and there is also a fee to revive as well.
It's best you bite the bullet and get it paid asap so as to avoid the administrative headache of getting things restored.
Plus, a suspension is published on the website and other people know you (LLC) are in trouble financially.
Curt Harrington Patent & Tax Law Attorney Certified Tax Specialist by the California Board of Legal Specialization PATENTAX.COM This communication is general information and not legal advice, and does not create an attorney-client relationship. This communication should not be relied upon as any type of legal advice. Please note that no attorney-client relationship exists between the sender and the recipient of this message in the absence of either (1) a signed fee contract and (2) remission of an agreed-upon retainer. Absent such an agreement and retainer, I am not engaged by you as an attorney, nor is any other member of my law firm.
Mr. Che's answer is very good.
Any comments offered are not intended as legal advice. This attorney does not know the specifics of the particular case sufficiently to offer legal advice. You should hire a lawyer who can evaluate the details of your specific situation before offering advice.