You can deduct California’s $800 annual tax and any annual fee from your federal taxes. As an LLC owner, you can deduct maintenance costs for your LLC.
If you have a sole proprietorship or LLC, you can claim some business losses on your personal taxes. You can usually deduct expenses related to your rent, mortgage, utilities, and supplies.
Business Expenses and Write-offs
As an LLC owner, you benefit from many tax write-offs. However, it’s important to know what write-offs are available. One essential write-off is the deduction for business expenses.
You can deduct on your taxes certain expenses paid personally for LLC business. The LLC agreement must show members are required to cover these expenses.
It’s important to keep records of business expenses for taxes. You’ll need accounting software to manage your business. If your business has no insurance, it needs insurance.
Personal, living or family expenses can’t be business tax write-offs. However, an owner can expense a purchase with both uses by dividing the cost between personal and business.