Keep Your Company in Good Standing.
California corporations and LLCs have recurring filing, tax and recordkeeping obligations. We help owners meet them on schedule and resolve lapses before they lead to penalties or suspension.
Recurring California Requirements
Most small businesses organized in California face some or all of these obligations each year.
Statement of Information
Corporations file Form SI-550 with the Secretary of State within 90 days of formation and every year after ($25). LLCs file Form LLC-12 within 90 days and every two years ($20). A missed filing can lead to a $250 penalty and, if it continues, suspension.
Annual tax and LLC fee
LLCs pay an $800 annual tax and, once total California income reaches $250,000, an LLC fee. Corporations pay franchise tax of 8.84 percent of net income (1.5 percent for S corporations), with an $800 minimum that does not apply in a corporation’s first taxable year.
Returns and estimated payments
LLCs file Form 568, partnerships Form 565, and corporations Form 100 or 100S, together with the matching federal returns and any required estimated tax payments.
Payroll registration and reporting
Employers register with the EDD within 15 days after paying more than $100 in wages in a calendar quarter, file quarterly Forms DE 9 and DE 9C, and file federal Forms 941 and 940.
Seller’s permits and sales tax
Businesses that sell tangible goods in California generally need a seller’s permit from the CDTFA and must file sales and use tax returns on the schedule the CDTFA assigns.
Information returns
Payments to independent contractors are reported on Forms 1099-NEC and 1099-MISC. Beginning with payments made in 2026, the general federal reporting threshold is $2,000.
Corporate Records and Annual Formalities
California corporations must hold an annual meeting of shareholders to elect directors (Corporations Code §600), keep adequate and correct books and records and minutes of shareholder and board proceedings (§1500), and send shareholders an annual report within 120 days after the end of the fiscal year unless, in a corporation with fewer than 100 holders of record, the bylaws expressly waive it (§1501).
LLCs have fewer statutory formalities, but operating agreements often impose their own requirements, and consistent records support the separation between a company and its owners.
We prepare annual minutes and written consents, update bylaws and operating agreements, and maintain a compliance calendar so required filings are made on time.
Suspension and Revival
The Franchise Tax Board can suspend a corporation or LLC that fails to file returns or pay taxes, penalties or fees, and the Secretary of State can suspend an entity that repeatedly fails to file its Statement of Information. A suspended business loses its rights, powers and privileges: it cannot legally do business in California, bring or defend a lawsuit, or keep the exclusive right to its name.
Contracts a business makes while suspended by the Franchise Tax Board are voidable at the request of the other party (Revenue and Taxation Code §23304.1). Revival generally requires filing all past-due returns, paying the balance owed, and submitting a revivor request to the Franchise Tax Board. We handle the filings with both agencies and request relief where it is available.
Beneficial Ownership Reporting
Under FinCEN’s final rule, effective August 14, 2026, companies created in the United States are exempt from beneficial ownership information reporting under the Corporate Transparency Act. Companies formed under foreign law and registered to do business in a state still have reporting obligations. Any request to file a beneficial ownership report or pay a related fee should be checked against FinCEN’s official guidance before you respond.
Choosing and Changing Entities
The choice among an LLC, an S corporation and a C corporation affects federal and California tax, payroll and ongoing compliance. We advise on the choice at formation and on later changes, such as an S corporation election or a conversion, with the tax and filing consequences reviewed in advance.
Related guides: LLC vs S-Corp vs C-Corp: A California Tax Comparison and California Franchise Tax: Minimum Tax, LLC Fee, and S-Corp Tax Explained.
Keeping Your Company Current
Contact Advantage Tax Law for a confidential consultation about your company’s filings and records.