California Business Portal

When would a limited liability company (LLC) be subject to penalties or interest?

LLCs may be subject to penalties and interest if they:
  • Pay tax (including Nonconsenting Nonresident (NCNR)) or fees late.
  • Underpay tax (including NCNR) or fees.
  • File their tax return beyond the extended due date.
  • Pay their estimated LLC fees late.
  • Underpay their estimated LLC fees.

The Franchise Tax Board (FTB) will impose penalties under the following California Revenue and Taxation Code (R&TC) Sections:
  • Underpayment and monthly, R&TC Section 19132.
  • Delinquent (does not apply to the annual tax), R&TC Section 19131.
  • Late filing, R&TC Section 19172.
If an LLC pays the balance due within 15 days of FTB notice's issue date, then no additional penalties or interest will accrue.

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