The first yearâs franchise tax fee is due no later than the fifteenth day of the fourth month after the business entity was formed. After that, the annual fee must be paid by April 15th. Thus, if you formed an LLC on June 1st, the first annual fee would be due on October 15th, and the second yearâs fee would be due on April 15th of the following year.But the first and second yearâs fees can come due at about the same time for a business entity formed near the end of the year. Suppose you form an LLC on November 15th. Youâll still be responsible for the full $800 first-year fee â the Franchise Tax Board does not reduce or pro-rate the fee for businesses formed in the last half of the year.To make matters worse, your first yearâs fee will be due on March 30th of the following year, but youâll have to pay the second yearâs fee just over two weeks later, on April 15th.  Thatâs a $1600 tax bill in your first few months of business.This double billing can mean that the cost to start a business in California is more than you budgeted for.