California Small Business Tax Deadlines
California does not follow the federal estimated-payment schedule. That surprise is a penalty.
Most California small business owners know the federal calendar and assume the state matches it. It does not, in two specific ways that generate penalties every year.
Our office does both the books and the coverage, so this page is the tax half. If you want the insurance half, start with small business insurance in California.
The $800 minimum franchise tax
Every LLC organized or doing business in California, and every S corporation operating or registered here, owes an annual minimum franchise tax of $800. For an S corp it is $800 or 1.5% of net income, whichever is greater.
The part that catches people: it is owed even if the business earned nothing, or was inactive all year. An LLC formed in December and dormant still owes it. This is the most common unpleasant surprise for first-year owners, and the most common reason a dissolved-on-paper-but-never-filed entity accumulates a balance.
Timing: for a calendar-year LLC the annual tax is generally due by the 15th day of the 4th month of the tax year (April 15). From year two onward the estimated franchise tax payment is due June 15 of the current year — not when you file the return. Missing that distinction is its own penalty.
California's 30/40/0/30 estimated schedule
This is the one that costs people money.
Federal estimated payments are evenly weighted — 25/25/25/25. California is 30/40/0/30: 30% with the first payment, 40% with the second, nothing in the third, and 30% with the fourth.
An owner who pays California in even quarters because that is how the federal schedule works will be underpaid after the June payment and can be assessed an underpayment penalty even though the total for the year is correct. The front-loading is deliberate and it is not optional.
2026 estimated payment dates: April 15, June 16, September 15, and January 15, 2027.
Penalties worth avoiding
- Late payment: commonly 5% per month, up to 25%
- Late filing for pass-through entities: roughly $18 per month per owner/partner, up to about $90 per month at five or more owners. A two-owner S corp accrues about $36 per month — $432 a year — on top of the $800 base
- Estimated underpayment: assessed even when the annual total is right, if the quarterly weighting was wrong
None of these are large individually. They compound quietly, and they are entirely avoidable with a calendar.
Where tax and insurance intersect
Two things worth doing in the same conversation:
- Workers' compensation is mandatory in California the moment you have employees, and the premium is payroll-driven — so a payroll change is both a tax event and an insurance event. See CA workers' comp requirements
- Entity choice affects both your franchise tax exposure and how your liability coverage should be structured. An S corp with vehicles needs commercial auto; most small operations want a business owners policy as the base
Doing them together is the advantage of a firm that handles both.
Do I owe the $800 California franchise tax if my business made no money?
Yes. The $800 annual minimum applies to LLCs and S corporations organized or doing business in California regardless of income, including inactive entities. For an S corp it is $800 or 1.5% of net income, whichever is greater.
What are California's 2026 estimated tax due dates?
April 15, June 16, September 15, 2026, and January 15, 2027 — but the weighting is not even. California uses 30/40/0/30, so the June payment is the largest of the year.
Why is California's estimated tax schedule different from federal?
California front-loads. Federal is 25/25/25/25; California is 30/40/0/30 with 40% due at the second payment and nothing at the third. Paying California in even quarters leaves you underpaid after June and can trigger a penalty even if your annual total is correct.
What are the penalties for paying California business taxes late?
Commonly 5% per month up to 25% for late payment, plus a pass-through late-filing penalty of roughly $18 per month per owner (up to about $90 per month at five or more owners). A two-owner S corp runs about $432 a year on top of the $800 base.
Can one firm handle both my business taxes and my insurance?
That is what this office does. Payroll drives workers' compensation premium and entity choice affects how liability coverage should be structured, so handling them together avoids the gaps that appear when two firms each assume the other has it.
Related pages
Accounting & Taxes
Our tax and bookkeeping page.
Learn more →Small Business Insurance
The coverage side.
Learn more →Workers' Comp Requirements
Payroll-driven and mandatory.
Learn more →Business Owners Policy
The base policy for most operations.
Learn more →This page is general information for California consumers, not legal, tax, or financial advice, and not an offer of coverage. Rates, rules, and carrier appetite change frequently — figures shown are typical ranges as of mid-2026 from public sources. Your own premium and eligibility depend on your specific situation. Confirm current requirements with the [California Department of Insurance](https://www.insurance.ca.gov/) or talk to a licensed agent. Express Financial & Insurance Services, Inc. is an independent brokerage in Santa Monica, CA — call 310-453-5736 for a no-obligation review.