While LLCs are all the rave in the business world… They are the bane of an entrepreneur's existence in the tax world. 

And here’s why:

Owning and operating an LLC is both challenging and cumbersome.

If you are unaware of the tax compliance requirements of owning an LLC in California, like the annual tax, or the ownership burden like the BOI filing requirement, you can end up paying more than you are ready for. 

For example, everyone is familiar with the Annual Franchise Tax of $800, but many are unaware of the additional “LLC Fee” that exists. This fee is based on the LLC's income and can range anywhere from $900 to $11,790. And the part that sucks about this fee is that it is based on the “Gross” income and not the “Net.” 

You see… forming an LLC is easy. And with the onslaught of social media financial influencers and gurus, everyone who's interested in being self-employed is being encouraged to get one. And they are doing so without knowing what they are actually getting into. 

But, the truth of the matter is, you really don’t need an LLC to start your business - especially if you are just getting started.

As a matter of fact, I highly recommend that you form a DBA instead and save yourself some money and a headache. Check out the resources below for some additional information.

Finally, if you already have an LLC and realize that you are not benefiting from it, consider canceling it so you are no longer obligated to these tax and operational burdens. 

On the other hand, if you have an LLC and have a legitimate reason for having it and just need some assistance getting everything in order - I’m here to help!