This guide provides California-specific tax information for coaching LLCs in 2026. As a coach, understanding your tax obligations is crucial for financial health and compliance. California presents unique tax challenges, including the $800 annual franchise tax. You might also find our guide on how to register an LLC in California useful here. Lovie can automate compliance and tax workflows, helping you focus on your coaching practice, not paperwork.
As a single-member LLC, your coaching business is typically taxed as a sole proprietorship. Profits are passed through to your personal income and are subject to self-employment tax. You can elect to be taxed as an S-Corp, which may reduce your self-employment tax burden, but increases complexity. California LLCs are also subject to the $800 annual franchise tax, regardless of profitability. This connects to our resource on LLC registration in California, which covers the details. Choosing the right structure impacts your overall tax liability. Lovie helps you model different tax scenarios to optimize your tax strategy.
Single-member LLCs pay self-employment tax (15.3%) plus income tax on all net profits, reported on Schedule C of the owner's personal tax return.
Deduct expenses for the portion of your home used exclusively and regularly for your coaching business.
Deduct ordinary and necessary business expenses, such as marketing, software, and travel. Deduct expenses for coaching certifications, workshops, and training related to your coaching niche.
Pay estimated federal income and self-employment taxes quarterly to avoid penalties.
Pay estimated California income taxes quarterly to avoid penalties. File and pay sales tax collected on taxable sales.
Start your formation with Lovie — $499 one-time, state filing fee included.
State-specific formation guides, cost breakdowns, compliance checklists, and expert comparisons — updated for 2026.