CPA for Freelancers in LA
Schedule C & Self-Employment Tax
Every dollar you earn as a freelancer flows through Schedule C, and the IRS pays close attention to how you categorize your income and expenses on that form. We prepare Schedule C returns that capture the full picture — not just the 1099s you received, but the direct payments, cash gigs, and platform income that might not come with a tax form at all.
Self-employment tax runs 15.3% on top of your income tax, and that number surprises a lot of first-time freelancers. There are legitimate ways to reduce it — the SE tax deduction, structuring through an S-corporation, and timing your income and expenses — but only if your CPA knows to apply them.
California Estimated Taxes
California doesn’t wait until April to collect. The FTB expects freelancers to make quarterly estimated payments, and the penalty for underpaying is real — even if you eventually pay everything you owe when you file. We calculate your quarterly vouchers based on actual income, not rough guesses, and adjust them mid-year when your earnings shift.
The state’s top marginal rate of 13.3% hits sooner than most people think. Combine that with federal self-employment tax and you’re looking at an effective rate that can clear 45% if nobody’s planning around it.
Entertainment & Gig Economy Deductions
LA freelancers spend money differently than salaried employees, and their deductions should reflect that. We track and categorize expenses that are specific to freelance work in this market: home office costs, equipment, union dues, agent commissions, self-promotion, professional development, and travel between gigs.
For entertainment industry freelancers — production crew, session musicians, editors, stylists — the deduction categories go deeper. Wardrobe that’s required for on-set work, demo reels, portfolio shoots, and industry networking events all count, but the documentation matters. We help you set up tracking systems that hold up if the IRS asks questions.
Why LA Freelancers Work With Us
Most of our freelance clients came to us after a year or two of doing their own returns and leaving money on the table. The most common mistake we see is people treating freelance income like W-2 income — they don’t track expenses in real time, they skip quarterly payments, and they miss deductions they didn’t know existed.
We fix that by giving you a clean system from day one: organized bookkeeping, quarterly payment scheduling, and a return that actually reflects what you do for a living. If your income is growing and the structure isn’t keeping up, we’ll tell you when it’s time to consider an entity change.
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