This guide provides a comprehensive overview of the tax obligations for Agency LLCs operating in California as of 2026. We'll cover federal and state taxes, available deductions, quarterly obligations, and common mistakes to avoid. Managing these complexities is crucial for your agency's financial health, which is why Lovie offers an AI-powered solution to automate company formation and ongoing compliance.
As an Agency LLC in California, your tax structure depends on elections made with the IRS. By default, a single-member LLC is treated as a disregarded entity for federal income tax purposes, meaning profits are taxed at the individual level. Multi-member LLCs are taxed as partnerships. However, you can elect to be taxed as an S-Corp or C-Corp for potential tax advantages. California also imposes its own set of taxes, including the annual franchise tax.
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