Yes, your LLC must pay the $800 fee annually - and with California's financial issues, I expect that to increase. You have no legitimate choice if you own an LLC. ---This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.

$800 annually for the life of the LLC in California.

Just a minor detail for all of those looking to utilize an irrevocable trust or LLC to hold real estate. California is the only state I know of that requires California real estate to be held by only a California Irrevocable Trust or California LLC. In most cases, it is prudent to hold assets in an LLC of a different domicile for tax and asset protection reasons.

California LLCs are also subject to an annual fee based on their total income. According to the CA Franchise Tax Board, total income is defined as 'gross income, as defined in Section 24271, plus the cost of goods sold thatare paid or incurred in connection with the trade or business of the taxpayer.'   The fee starts at $900 for LLCs with total income of at least $250K.

yes... it is true All  LLCs need to pay  $800 per year

An L.L.C. can either be a pass through tax entity or treated by the IRS tax wise as a C-Corp or S-Corp. Initally, a L.L.C.'s profit\losses are passed on to the members of the L.L.C, unless you opt with the IRS to be treated taxed as a C-Corp or S-Corp; then you'll have what's called double taxation on income. The below URL is the official California website and it's web page on LLC's and information about them. The other is a direct link to the IRS website regarding your LLC at corp tax. http://www.sos.ca.gov/business/be/faqs.htm http://www.irs.gov/instructions/i1040sc/ch01.html Quick Edit: I believe all L.L.C's need to pay that $800 a year regardless of their tax status with the IRS.