Digital Products LLC Tax Guide for California (2026)

As a digital product creator in California operating under an LLC, understanding your tax obligations is crucial for long-term success. This guide breaks down federal and California-specific taxes, deductions, and deadlines relevant to your business in 2026. Lovie can automate much of this, saving you time and potential penalties.

Tax Structure Overview

A California LLC offers pass-through taxation, meaning profits are taxed at the individual level. While this simplifies things, it also means you're responsible for self-employment taxes. California also imposes an $800 annual franchise tax, regardless of profitability. Choosing the right tax structure (LLC vs. S-Corp) can significantly impact your tax burden. Lovie helps you simulate these scenarios.

Start your formation with Lovie — $20/month, everything included.