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Running a business of one in California

California has some of the highest taxes and most specific rules in the country for solopreneurs. Here's what to know about forming, filing and paying yourself — all in one place.

See California at a glance

At a glance

California business and tax essentials

The numbers that matter most for LLCs and S Corps with one owner.

Annual franchise tax $800 Minimum due every year for LLCs and corporations, including S Corps — even with no income.
S Corp franchise tax 1.5% Of net income at the entity level, with the $800 minimum. Filed on Form 100S.
Personal income tax 1–13.3% Nine brackets up to 12.3%, plus a 1% mental health services tax on income over $1M.
LLC gross receipts fee $900+ Added on top of the $800 once California gross receipts reach $250K, scaling up to $11,790.
PTE elective tax 9.3% S Corps and LLCs can pay state tax at the entity level to work around the federal SALT cap. Extended through 2030.
Estimated tax schedule 30/40/0/30 California front-loads quarterly payments: 30% in April, 40% in June, none in September, 30% in January.
State disability insurance 1.3% Withheld from S Corp owner payroll in 2026, with no wage cap.
Base sales tax 7.25% Statewide minimum; local district taxes push some cities above 10%. Most services aren't taxable.

Good to know

Statement of Information: LLCs file every two years ($20); corporations file every year ($25).
Hiring contractors: California's ABC test (AB5) sets a strict bar for who counts as a 1099 contractor.
Minimum wage: $16.90/hour statewide in 2026; many cities set a higher rate.