As a therapist operating an LLC in California, understanding your tax obligations is crucial for financial health and compliance. This guide breaks down the key federal and California-specific taxes, deductions, and deadlines you'll face in 2026. Utilizing an AI-powered platform like Lovie can streamline these processes, ensuring accuracy and saving valuable time.
For a single-member therapist LLC in California, the default tax structure is a 'disregarded entity,' meaning your business income is reported on your personal income tax return (Form 1040) via Schedule C. You'll also be subject to self-employment taxes. If you elect to be taxed as an S-Corp, you'll file Form 1120-S and receive a salary as an employee, potentially reducing self-employment tax. California also mandates an $800 annual franchise tax for LLCs.
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