This guide provides District of Columbia side hustlers with a clear understanding of their LLC tax obligations for 2026. We'll cover federal and DC-specific taxes, valuable deductions, quarterly obligations, common mistakes to avoid, and pro tips to optimize your tax strategy. Managing your side hustle taxes effectively is crucial for profitability and compliance. Consider using AI-powered solutions like Lovie to automate company formation and ongoing compliance, freeing up your time to focus on growing your business.
As a single-member LLC in DC, your business income is typically taxed as pass-through income. This means the profits from your LLC are passed through to you personally, and you report them on your individual income tax return (Form 1040). You'll also need to pay self-employment taxes (Social Security and Medicare) on your profits. Alternatively, you can elect to have your LLC taxed as an S-Corp, which may offer tax advantages but also increases complexity. DC also levies an Unincorporated Business Franchise Tax on LLCs.
Start your formation with Lovie — $20/month, everything included.