Illustration of the California LLC fee under R&TC section 17942 — income tiers from $900 to $11,790, the June 15 Form 3536 estimate, and the prior-year safe harbor
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California LLC Fee 2026: Tiers, June 15 Estimate & Penalty

What is the California LLC fee, and how do you avoid the 10% penalty? Separate from the $800 annual minimum franchise tax, California imposes a second, income-based “LLC fee” (Revenue & Taxation Code §17942) on every LLC organized, doing business, or registered in California with total California-source income of at least $250,000. The fee is…