# State taxes on the entity

> Pass-through for the IRS isn't pass-through everywhere: California's $800 LLC tax and fee, and where the state rules live.

Source: https://lopifi.com/learn/how-business-entities-are-taxed/state-entity-taxes
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**Do states tax LLCs and pass-through entities?** Pass-through for the IRS isn't pass-through everywhere: California's $800 LLC tax and fee, and where the state rules live.

Federal pass-through status doesn't bind the states. Some tax the entity itself, whatever the IRS calls it. California is the example most founders meet: every LLC classified as a partnership or disregarded that does business in California, or is organized or registered there, owes an $800 annual tax — and on top of it a fee once its total California income reaches $250,000.

> “LLCs classified as disregarded entities or as partnerships are subject to an $800 annual tax. This applies if they do business in California or if the SOS accepts their Articles of Organization (LLC-1) or Application for Registration as a Foreign Limited Liability Company (LLC-5).”

— [FTB Pub. 3556 LLC MEO (Rev. 09/2021), Annual Tax and LLC Fee](https://www.ftb.ca.gov/forms/misc/3556.html), California's $800 LLC annual tax, and the LLC fee on total income of $250,000 or more

| Total California income | LLC fee |
| --- | --- |
| $250,000 – $499,999 | $900 |
| $500,000 – $999,999 | $2,500 |
| $1,000,000 – $4,999,999 | $6,000 |
| $5,000,000 or more | $11,790 |

California's LLC fee, on total income derived from or attributable to California (FTB 3556).

Corporations meet the same idea as a minimum franchise tax: California's corporation minimum, Delaware's [franchise tax](https://lopifi.com/md/glossary/delaware-franchise-tax) on every Delaware corporation, and other states' taxes on capital or gross receipts. Which states a company owes, and how its income is [apportioned](https://lopifi.com/md/glossary/apportionment) among them, is the compliance track's [state income and franchise taxes](https://lopifi.com/md/learn/state-income-and-franchise-taxes) lesson; each state's own figures are in the [state guides](https://lopifi.com/states).

## Where this page's rules come from

- [FTB Pub. 3556 LLC MEO (Rev. 09/2021), Annual Tax and LLC Fee](https://www.ftb.ca.gov/forms/misc/3556.html) — California's $800 LLC annual tax, and the LLC fee on total income of $250,000 or more (state)

- **Track:** [Entity types](https://lopifi.com/md/learn/entities)
- **Part of:** [How each entity is taxed](https://lopifi.com/md/learn/how-business-entities-are-taxed) — 3 min
- **Terms taught:** [Apportionment](https://lopifi.com/md/glossary/apportionment), [Delaware franchise tax](https://lopifi.com/md/glossary/delaware-franchise-tax)
- **Previous:** [The QBI deduction (§199A)](https://lopifi.com/md/learn/how-business-entities-are-taxed/qbi-deduction)
- **Next:** [The S corporation election, Entities · Lesson 3](https://lopifi.com/md/learn/s-corporation-election)
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