Forming an AI or Machine Learning LLC in California offers exciting opportunities, but navigating the tax landscape can be complex. This guide provides a clear overview of federal and California state tax obligations, deductions, and common pitfalls to help your AI/ML business thrive in 2026. Let Lovie handle the complexities of formation and compliance, so you can focus on innovation.
As an LLC, your AI/ML business has several tax structure options. By default, it's treated as a pass-through entity, meaning profits are taxed at the individual owner level. You can also elect to be taxed as an S-Corp or C-Corp. S-Corp election may reduce self-employment taxes. C-Corp election may be attractive to some investors, but comes with double taxation. Choosing the right structure is crucial for optimizing your tax burden. Lovie can help you assess the best option for your specific needs.
Start your formation with Lovie — $20/month, everything included.