Yes, according to the IRS
Other Types of Business Expenses page:
"Taxes - You can deduct various federal, state,
local, and foreign taxes directly attributable to your trade or business as
business expenses."
As such, they should be reported under:
- Federal Taxes
-
Wages & Income
-
Business Items (if using TurboTax Online, you will be prompted to upgrade to Home & Business; all desktop TurboTax versions will prepare Schedule C without an upgrade)
- Business Expenses
- Other Common Business Expenses
- Taxes & Licenses
According to the California Tax
Service Center:
- "The annual tax is NOT deductible."
- "Generally, the limited liability fee is considered a deductible ordinary and necessary business expense."
Be sure to review your State tax return to be sure you remove the annual tax from your business expenses before you file your State return.
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