So you're building a side hustle in California and thinking about forming an LLC? Smart move! But navigating the tax landscape can be tricky. This guide breaks down everything you need to know about California LLC taxes in 2026, tailored specifically for the side hustler. Learn how to minimize your tax burden and keep more of your hard-earned income. And remember, Lovie can automate much of this complexity, letting you focus on growing your business.
As a single-member LLC in California, your business income typically 'passes through' to your personal income tax return. This means the LLC itself doesn't pay federal income tax. Instead, you'll report your business profits and losses on Schedule C of your Form 1040. California also recognizes pass-through taxation, but with a few extra layers like the $800 franchise tax. Multi-member LLCs can elect to be taxed as partnerships or corporations, which changes the tax implications significantly.
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