# California Franchise Tax — Palace Fund LLC

**Status:** NOT STARTED
**Priority:** MEDIUM
**Owner:** Ace

## What

California LLCs owe an annual $800 minimum franchise tax to the Franchise Tax Board (FTB). Palace Fund LLC was formed 2026-02-26.

## Key Dates

- **First year:** $800 due by the 15th day of the 4th month after formation
  - Formed 2026-02-26 → due **June 15, 2026**
- **Subsequent years:** $800 due by April 15 each year
- **LLC fee:** Additional fee if total California income ≥ $250K (unlikely for first year, but possible if fund has gains)

## LLC Fee Schedule (if applicable)

| Total Income | Fee |
|---|---|
| $250,000 – $499,999 | $900 |
| $500,000 – $999,999 | $2,500 |
| $1,000,000 – $4,999,999 | $6,000 |
| $5,000,000+ | $11,790 |

## Steps

- [ ] Ace: Confirm first-year due date (June 15, 2026)
- [ ] Ace: Determine payment method — FTB website, mail, or EFT
- [ ] Ace: Set up FTB online account for Palace Fund LLC
- [ ] Junwon: Pay $800 by June 15, 2026
- [ ] Ace: Set annual reminder for April 15 payment
- [ ] Ace: Determine if LLC fee applies based on fund income

## Payment

- Online: ftb.ca.gov → Web Pay for businesses
- Form: FTB 3522 (LLC Tax Voucher)
- EIN required: 41-4626580 ✓
- CA SOS file number: B20260098289

## First-Year Exemption?

California eliminated the first-year $800 exemption for LLCs formed after 2023. Palace Fund LLC owes $800 for 2026.

## References

- FTB: https://www.ftb.ca.gov/file/business/types/limited-liability-company/
- Form 3522: https://www.ftb.ca.gov/forms/misc/3522.html