California LLC Annual Requirements and Ongoing Compliance

California's version of an annual report is the Statement of Information (Form LLC-12), and it works differently than the yearly reports most states use.

The initial filing has a 90-day clock

Within 90 days of the Secretary of State accepting your Articles of Organization, you must file an initial Statement of Information. This is the deadline that catches new owners most, because it is not part of forming the LLC — it comes right after, and the clock starts the moment your Articles are accepted.

After that, it's every two years

Unlike states with annual reports, California LLCs file the Statement of Information biennially — every two years — keyed to the anniversary month of formation. The state generally opens a filing window in the months leading up to your due month.

What it contains

• Principal business address and mailing address
• The agent for service of process
• The type of business
• The managers or members of record, and the CEO if applicable

It is filed through the bizfile Online portal and is informational — you are not reporting revenue, profit, or any financial detail.

What happens if you miss it

Missing the Statement of Information deadline triggers a penalty and, if it stays unfiled, can lead the Secretary of State to suspend your LLC. A suspended LLC loses the right to enforce its contracts and to do business normally until it is revived.

The Statement of Information is the Secretary of State's requirement. The franchise tax is a completely separate obligation to the Franchise Tax Board, and it is the one with real financial weight.

Minimum franchise tax every year

Every LLC registered or doing business in California owes a minimum annual franchise tax, due whether or not the business made money. The old first-year waiver has expired, so it applies from your first year. This payment is annual and recurs for the life of the LLC.

The tiered LLC fee for higher revenue

If your California-source gross receipts pass certain thresholds, you owe an additional LLC fee on top of the minimum tax, tiered by revenue. It is based on gross receipts rather than profit, so a high-revenue business can owe it even in a lean year.

Two agencies, two calendars

This is worth repeating because it trips people up: the Statement of Information goes to the Secretary of State (biennial), and the franchise tax goes to the Franchise Tax Board (annual). Staying compliant means keeping both calendars, not one. Mainstay Filing can help with the Statement of Information; the franchise tax is paid directly to the FTB.

Your LLC must maintain a valid agent for service of process at all times — it is not a one-time formation step. The agent has to stay reachable at a California street address (for an individual) or remain an active registered corporate agent (for a commercial service) throughout the life of the company.

When you need to update the agent

• The agent moves to a new address
• The agent resigns or is no longer available
• You switch from serving as your own agent to a commercial service, or between providers

You update the agent by filing a Statement of Information (or the appropriate change filing) with the Secretary of State. An LLC with a stale or invalid agent is out of compliance even if the franchise tax is paid and the Statement of Information is otherwise current — and worse, it risks missing a lawsuit served at a dead address.

Beyond the core state obligations, a California LLC often has industry- and location-specific requirements that recur on their own schedules.

Local business licenses

California has no single statewide general business license, but most cities and counties require a local business license or tax certificate, and many renew annually. Check with the city and county where you operate.

Seller's permit and sales tax

If you sell taxable goods, you register for a seller's permit with the California Department of Tax and Fee Administration and file sales and use tax returns on the schedule the state assigns you.

Employer obligations

If you have employees, you register with the Employment Development Department, withhold and remit payroll taxes, and carry workers' compensation coverage. These are ongoing and separate from your entity filings.

Professional and industry licensing

Many trades and professions require state licensing that renews on its own cycle — contractors, cosmetologists, real estate professionals, and others. Your LLC formation does not replace or satisfy these.

Fictitious Business Name renewals

If you operate under a DBA, the county Fictitious Business Name registration expires periodically and must be renewed, and a change of ownership or business can require a new filing and republication.

The way California LLC owners get into trouble is not usually one big mistake — it is losing track of a couple of recurring dates. A simple calendar solves most of it.

The dates to lock in

• 90 days from formation: initial Statement of Information due
• Every two years, your anniversary month: biennial Statement of Information
• Annually: minimum franchise tax to the Franchise Tax Board, plus the tiered LLC fee if your revenue triggers it
• Ongoing: keep your agent for service of process valid and your addresses current
• Locally: business license and any industry license renewals

How Mainstay Filing helps

We flag the Statement of Information deadlines — both the 90-day initial and the biennial cycle — and can prepare and file those for you so an easy-to-miss form never puts your LLC into suspension. If we serve as your agent for service of process, we keep that piece valid automatically and forward anything served on your company. We handle the Secretary of State side; the Franchise Tax Board payments and local licenses stay with you and your CPA, because those are tax and jurisdiction matters, not filings we make on your behalf.