What tax deductions can an LLC take?

LLCs can deduct all ordinary and necessary business expenses from their taxable income, including home office costs, business equipment, vehicle expenses, health insurance premiums, retirement contributions, professional services, software subscriptions, marketing costs, and business travel.

Top LLC tax deductions by savings potential: (1) Home office deduction — $5 per square foot up to 300 sq ft, or actual expenses method, (2) Self-employed health insurance — 100% of premiums for you, spouse, and dependents, (3) Retirement contributions — up to $69,000/year with a Solo 401(k) in 2026, (4) Vehicle expenses — 70 cents per mile or actual costs, (5) Section 179 equipment deduction — up to $1,220,000 in 2026, (6) Qualified Business Income (QBI) deduction — 20% of qualified business income for pass-through entities. The QBI deduction alone can save a profitable LLC owner thousands: on $100,000 net income, the 20% QBI deduction reduces taxable income by $20,000, saving $4,400-$7,400 in taxes depending on your bracket.