Essential Annual and Quarterly Filings for California LLCs: A Comprehensive Guide

Hello, I'm attorney Elizabeth Potts Weinstein. Today, we're diving into the mandatory annual, quarterly, and monthly filings for California LLCs. This guide specifically covers government filings, not private company obligations. These filings are crucial for maintaining your LLC's compliance.

Required Filings for Every California LLC

Regardless of your business type, size, or activity status, there are two mandatory filings for all California LLCs:

1. Statement of Information:

   • Frequency: Biennially (every two years).
   • Details: Submit this filing within the first few months after forming your LLC, and then every two years based on your LLC's formation month. This document provides updated information about your LLC's address, owners, registered agent, and business type. The filing fee is $20.
   • Process: You can file online via the California Secretary of State’s website.

2. Tax Return and Franchise Fee:

   • Frequency: Annually.
   • Details: Every LLC must file a tax return and pay an $800 annual franchise fee. This requirement applies regardless of how your LLC is taxed (sole proprietorship, partnership, S corporation, or C corporation).
   • Note: While LLCs taxed as sole proprietorships pass income taxes to the owner's personal tax return, they still need to file a form with the state and pay the franchise fee.

Additional Filings Based on Business Activity

Depending on your business operations, size, and structure, you may need to handle the following filings:

1. Quarterly Tax Deposits:

   • Federal and State Requirements: If your business generates income, both the IRS and the State of California require quarterly tax payments. The amounts depend on your previous year's income and current earnings. It's advisable to use accounting software or hire an accountant to manage these calculations and payments.

2. Separate Tax Returns:

   • For LLCs Taxed as Partnerships, S Corporations, or C Corporations: Each entity type must file a separate tax return. This process can be complex, so most businesses hire a tax professional for this task.

3. Payroll and Employee Filings:

   • For LLCs with Employees: You must manage multiple filings at the federal and state levels, including payroll taxes and workers' compensation. Using a payroll service like Gusto can simplify this process.

4. 1099 Forms:

   • For Hiring Contractors: Annually, you must issue 1099 forms to contractors paid $600 or more during the year. Payroll services or accountants often handle this task.

5. Sales Tax Returns:

   • For Businesses Selling Products: Register for a seller's permit and file sales tax returns. The frequency (monthly, quarterly, or annually) depends on your sales volume. Many e-commerce platforms automate sales tax calculations and submissions.

6. Local Business Licenses:

   • Municipal Requirements: Most cities or counties in California require an annual business license or tax certificate. Check with your local government for specific requirements and renewal dates.

7. Industry-Specific Permits:

   • Professional Licensing: Certain industries, like restaurants or law practices, require specific licenses and inspections. These often have annual renewal requirements.

8. DBA and Trademark Renewals:

   • DBAs: Renew your fictitious business name (DBA) every five years.
   • Trademarks: Renew trademarks at the five-year mark, then every ten years thereafter.

Managing Deadlines

To keep track of these various deadlines:

• Use a Calendar System: Set up reminders in a Google Calendar or similar tool to notify you of upcoming filing deadlines. Input all known deadlines at the beginning of the year to ensure you don't miss any important dates.
• Hire Professionals: Consider hiring an accountant or using a payroll service to manage more complex filings and ensure compliance.

By staying on top of these filings, you can avoid penalties and keep your California LLC in good standing.