Attention California LLC Owners: Two Key Tax Reminders You Don’t Want to Miss – 1) Annual $800 Minimum Fee, and 2) Form 568 – Due April 15th

alarm clock and post it note infographic with "reminder" Attention California LLC Owners: Two Key Tax Reminders You Don’t Want to Miss

Attention California LLC Owners: Two Key Tax Reminders You Don’t Want to Miss – 1) Annual $800 Minimum Fee, and 2) Form 568 – Due April 15th

April 4, 2025
devinlucas

If you own a California LLC, especially one holding real estate for rental purposes, it’s time to take action. As we roll into spring, two important deadlines are right around the corner — and missing either can cost you penalties, interest, and unwanted stress.

At Lucas Real Estate Group, we work with high-profile investors, trustees, and families navigating the unique legal and tax responsibilities of LLC-owned real estate in California. Here’s your quick reminder to stay compliant and protect your investments.

1. Your $800 Minimum Annual Franchise Tax Is Due April 15

All LLCs doing business in California — or simply registered with the California Secretary of State — are subject to an $800 minimum annual tax, even if they had no activity or income during the year.

Due Date: April 15, 2025 (for calendar-year filers)
Pay With: FTB Form 3522 – LLC Tax Voucher (available from the Franchise Tax Board or can be paid online here)
Note: If your LLC had gross California-source income of $250,000 or more, you may also owe a higher annual LLC fee, calculated using FTB Form 3536.

This payment is not optional — it’s the cost of maintaining an active LLC in the State of California.

2. Form 568 – LLC Return of Income Is Also Due April 15

Your LLC must also file Form 568, California’s required annual return for LLCs classified as partnerships or disregarded entities (e.g., single-member LLCs).

Original Filing Deadline: April 15, 2025 (for most calendar-year LLCs)
Automatic Filing Extension: LLCs receive a 7-month automatic extension to file — but not to pay.
That means even if you plan to file in November, your tax payments must still be made on or before April 15.

Failing to file or pay on time may result in late fees, interest, or even suspension of your LLC.

Important Note: Form 568 is required even if your LLC had no income during the year. This includes situations where your LLC is simply a holding company for real estate, used for privacy, asset protection, or estate planning purposes. Many real estate investors structure ownership through LLCs to safeguard personal liability and maintain confidentiality — but even an “inactive” LLC or one used merely to hold a personal residence must still file.

Failing to file or pay on time may result in late fees, interest, or even suspension of your LLC by the Franchise Tax Board.

Bonus Tip: There’s More Requirements Than Listed Here, Don’t Go It Alone

LLCs must also a Statement of Information every two (2) years before the end of the calendar month of the original registration date. There are FinCEN Financial Crimes Enforcement Network Requirements and other obligations for LLCs and LLC owners.

Many LLCs are formed to hold rental property or manage complex multi-member ownership structures. If that sounds like you — especially if you’re dealing with trust-owned property, multiple members, or out-of-state investors — professional assistance is essential.

At Lucas Real Estate Group, we specialize in helping clients navigate:

Real estate held in LLCs
Trust and estate administration
Discreet, high-value property transfers
California Proposition 19 implications
Property tax and capital gains strategies
Property sales and acquisitions
Property Management in the greater Newport Beach and Costa Mesa areas

We’re More Than Just Real Estate

Led by Devin R. Lucas, a Real Estate Attorney, Broker, and REALTOR®, our team combines deep legal and tax knowledge with marketing power. From Newport Beach to Eastside Costa Mesa, we serve clients throughout Orange County’s coastal communities, including Corona del Mar, Dover Shores, Newport Heights, Mesa Del Mar, and more.

Whether you’re a trustee managing inherited property, a family planning your next move, or a high-profile investor seeking confidentiality — we’re here to guide you every step of the way.

Questions or Need Help?

Have questions about LLCs, taxes, or real estate planning?
Reach out to Lucas Real Estate Group today:

[email protected]
(949) 478-1623

Thinking of selling California real estate, or perhaps an acquisition or in need of professional property management, we would love the opportunity to assist – we provide full service sales in Newport Beach, Costa Mesa and surrounding areas. If you are seeking to sell your home in Newport Beach, Costa Mesa or the surrounding areas, call or email anytime for a free brief consultation – [email protected] or 949-478-1623.

We also provide real estate legal advice and real estate tax consultation for sales throughout the state of California. Call or write anytime or book a consultation. Paid one-hour confidential legal consultations are conducted daily via Zoom and address virtually all questions, options, tax implications and strategies. (Book a consultation here.)

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– Devin Lucas

Author Devin R. Lucas is a Real Estate Broker, REALTOR® and Real Estate Attorney specializing in Newport Beach, Costa Mesa, and Orange County coastal communities. Courtney Lucas, a licensed CPA, Real Estate Salesperson, and REALTOR®, provides expert financial insight alongside real estate services. Together, they lead Lucas Real Estate, operating in conjunction with Coldwell Banker, the region’s premier luxury brokerage.

Lucas Real Estate offers unmatched expertise in California real estate sales, property management, capital gains strategies, and property tax matters, including Propositions 13, 58, 193, 60, 90, and new Proposition 19.

📞 Contact Us:
✉️ [email protected] | 📞 949.478.1623

If you’re selling a property, seeking REALTOR® services, or exploring a traditional commission-based home sale or purchase, we’re here to help – free of charge. Call us anytime at (949-478-1623) or email [email protected] for your complimentary consultation and market evaluation.

For discussions requiring real estate legal advice, private family sales, family transfers, or tax-related matters, please schedule a paid one-hour consultation via Zoom, phone, or in person using this calendar (Book a consultation here.) Upon booking, you’ll receive instant confirmation and a Zoom link if applicable.

Lucas Real Estate is a full-service brokerage offering residential real estate, legal services, and strategic tax planning—all under one roof.

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sources:

https://www.ftb.ca.gov/file/business/types/limited-liability-company/index.html
2024 FORM 568 Limited Liability Company Return of Income (https://www.ftb.ca.gov/forms/2024/2024-568.pdf)
2024 Instructions for Form 568 Limited Liability Company Tax (https://www.ftb.ca.gov/forms/2024/2024-568-booklet.html)

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