Limited liability partnership Business type


You can form a business surrounding your professional services by forming a limited liability partnership (LLP).

You must be licensed as either a(n):

  • Lawyer
  • Architect
  • Accountant

Making the LLP agreement

You should make a formal, written agreement with any other members as part of setting up your LLP. This sets out how the LLP will be run.

Open an LLP

To form a California LLP, partners are required to file an Application to Register a Limited Liability Partnership with the Secretary of State (SOS).

If you’re an attorney, you need to register your LLP with the California State Bar once you receive approval from the SOS.

Filing requirements

LLPs do not pay income tax but they are subject to the annual tax of $800.

Your return is due the 15th day of the 3rd month after the close of your taxable year.

For more information visit Due dates for businesses.

Partnership return of income (form FTB 565)

You are required to file Partnership Return of Income (Form 565) if you are an LLP that:

  • Does business in California
  • Has California source income
  • Is registered with the SOS

Visit 565 Partnership Tax Booklet for more information

Partners’ share of income, deductions, credits, etc. (Schedule K-1 565)

Each partner is responsible for paying taxes on their distributive share. Use Partner’s Share of Income, Deductions, Credits, etc. (Schedule K-1 565).

Visit Partner’s Instructions for Schedule K-1 (565) for more information.

Withholding agent

Visit Resident and Nonresident Withholding Guidelines (FTB 1017) and the Quick Reference Guide California Nonwage Withholding Forms (FTB 1018) for more information.

Estimated tax

The LLP has no estimated tax requirements. However, partners may have to make estimated tax payments on their personal income tax returns.

Exceptions to the first year annual tax

Limited liability partnerships are not subject to the annual tax and fee if both of the following are true:

  • They did not conduct any business in California during the tax year
  • Their tax year was 15 days or fewer