[FREE GUIDE] TAX SECRETS FOR THE SELF EMPLOYED Download

Los Angeles County · California

CPA & Tax Services in Hermosa Beach, CA — Expert Tax Accountant for Business Owners & Investors

Searching for a CPA near you in Hermosa Beach? KDA's licensed CPAs and Enrolled Agents provide tax preparation, LLC & S Corp formation, IRS and FTB audit defense, and proactive tax strategy for Hermosa Beach business owners, self-employed professionals, real estate investors, and high-income individuals. We know Hermosa Beach's local economy — and we build tax strategies around it.

30+ Years in California
Licensed CPAs & Enrolled Agents
IRS + FTB Dual Agency Expertise
$0 Consultation Fee
19,000 Hermosa Beach Residents
CPA near you in Hermosa Beach Book Free Consultation
Tax Services in Hermosa Beach, CA

What Hermosa Beach Clients Come to KDA For

From solo consultants to multi-entity real estate investors, KDA handles the full spectrum of Hermosa Beach tax needs.

Tax Preparation in Hermosa Beach

KDA prepares individual and business tax returns for Hermosa Beach residents. We handle all federal and California FTB filings, identify every deduction, and ensure full compliance.

LLC & S Corp Formation in Hermosa Beach

KDA advises Hermosa Beach business owners on entity structure, S Corp elections, and optimal compensation strategies. We calculate the exact tax savings from an S Corp election given California's 1.5% franchise tax.

IRS & FTB Audit Defense in Hermosa Beach

KDA represents Hermosa Beach taxpayers before the IRS and California FTB. Our Enrolled Agents handle all correspondence, document preparation, and negotiations.

Strategic Tax Planning for Hermosa Beach Clients

KDA builds multi-year tax plans for Hermosa Beach business owners and high-income individuals — retirement plan optimization, capital gains timing, and California-specific planning.

Real Estate Tax Services in Hermosa Beach

KDA helps Hermosa Beach real estate investors maximize depreciation, execute 1031 exchanges, analyze cost segregation, and navigate California's Prop 13 and Prop 19 rules.

Bookkeeping & Payroll for Hermosa Beach Businesses

KDA provides monthly bookkeeping, payroll processing, and financial reporting for Hermosa Beach small businesses — keeping your books clean and your tax liability minimized year-round.

Tax Environment in Hermosa Beach, Los Angeles County

Hermosa Beach is an affluent beach city with a high concentration of tech professionals, entrepreneurs, and real estate investors. Whether you are a new LLC owner figuring out your first California tax filing, a self-employed contractor trying to reduce your 15.3% self-employment tax, a real estate investor who just sold a rental property, or a high-income professional looking for aggressive but legal tax reduction — KDA's licensed CPAs and Enrolled Agents have the California-specific expertise to help. We've served Los Angeles County clients for over 30 years.

Hermosa Beach Business & Economic Profile

Hermosa Beach's economy is defined by an affluent beach city with a high concentration of tech professionals, entrepreneurs, and real estate investors. This creates specific tax planning opportunities and challenges that generic national tax firms miss. Tech entrepreneurs and startup founders who need equity compensation tax planning and california-specific business structure optimization is one of the most common issues KDA addresses for Hermosa Beach clients. KDA builds multi-year tax plans that account for California's unique rules — the FTB's worldwide income taxation, the $800 LLC minimum franchise tax, the S Corp 1.5% net income tax, and Prop 13/19 property tax implications.

Key Tax Issues for Hermosa Beach Residents & Business Owners

These are the tax situations KDA sees most often from Hermosa Beach clients — and where proactive planning makes the biggest difference.

New LLC Owners in Hermosa Beach — What You Don't Know Will Cost You

Every new LLC in California owes an $800 annual franchise tax to the FTB — due the first year, even if you made no money. Hermosa Beach LLC owners also face quarterly estimated tax payments, self-employment tax of 15.3%, and California's additional gross receipts fees once revenue exceeds $250,000. KDA walks new Hermosa Beach business owners through every obligation before they become penalties.

Self-Employment Tax Reduction for Hermosa Beach Business Owners

Most Hermosa Beach self-employed professionals pay 15.3% self-employment tax on all net income. An S Corp election eliminates SE tax on the portion above a reasonable salary — typically saving $10,000-$40,000 per year for Hermosa Beach business owners with net profit over $80,000. KDA calculates the exact breakeven point and handles the election, payroll setup, and ongoing compliance.

California FTB Audits and Residency Disputes in Hermosa Beach

The California FTB is one of the most aggressive state tax agencies in the country. Hermosa Beach residents who split time between California and Nevada, Texas, or other states need to carefully document their primary residency. KDA advises on California's "safe harbor" rules and represents Hermosa Beach taxpayers in FTB audits and residency disputes.

Real Estate Tax Opportunities for Hermosa Beach Investors

Hermosa Beach real estate investors have access to powerful tax strategies: depreciation deductions that offset rental income, 1031 exchanges that defer capital gains indefinitely, cost segregation studies that accelerate depreciation, and California's Prop 19 rules for inherited property. KDA helps Hermosa Beach investors build tax-efficient real estate portfolios.

Who KDA Serves in Hermosa Beach

KDA works with a wide range of Hermosa Beach clients. Here are the profiles we see most frequently — and how we help each one.

New Business Owners & LLCs in Hermosa Beach

Just formed your LLC in Hermosa Beach? KDA helps new business owners understand their California tax obligations from day one — the $800 franchise tax, quarterly estimated payments, payroll requirements, and the S Corp election decision. We prevent the costly surprises that hit most new Hermosa Beach business owners in their first year.

Self-Employed & 1099 Contractors in Hermosa Beach

Freelancers, consultants, and 1099 contractors in Hermosa Beach face the full 15.3% self-employment tax plus California's state income tax. KDA reduces this burden through S Corp elections, retirement plan optimization (up to $69,000/year in a Solo 401(k)), and comprehensive deduction strategies.

Real Estate Investors in Hermosa Beach

Hermosa Beach real estate investors benefit from KDA's expertise in depreciation, 1031 exchanges, cost segregation, passive activity loss rules, and California's Prop 13 and Prop 19 property tax environment. Whether you just sold a rental property or are building a portfolio, KDA has the strategy.

High-Income Professionals in Hermosa Beach

High-income W-2 employees and professionals in Hermosa Beach often believe they have no tax planning options. KDA regularly identifies $10,000-$50,000 in annual savings through backdoor Roth strategies, HSA optimization, equity compensation timing, charitable giving strategies, and California-specific deductions.

ZIP Codes Served in Hermosa Beach

KDA serves clients in all Hermosa Beach ZIP codes: 90254. We also serve surrounding Los Angeles County communities and can meet in person or virtually.

Find a CPA in Hermosa Beach, CA

KDA's licensed CPAs and Enrolled Agents serve Hermosa Beach and all of Los Angeles County. Book a free consultation — no obligation, no sales pitch.

Book a Free Consultation

KDA Client Results in Hermosa Beach & Los Angeles County

These anonymized case studies represent real outcomes for clients in Hermosa Beach and the surrounding area. Individual results vary based on income, entity structure, and tax situation.

New LLC Owner
Saved $22,800/year

Hermosa Beach LLC Owner Discovers S Corp Election

A Hermosa Beach real estate business owner with $195,000 in net profit came to KDA after their first year as a sole proprietor — they had paid $27,500 in self-employment tax and had no idea the S Corp election existed. KDA analyzed the numbers, set a reasonable salary of $75,000, and filed the S Corp election. The result: $22,800 in annual self-employment tax savings. KDA also set up a Solo 401(k) that sheltered $30,000 from California income tax. The client's total first-year benefit with KDA exceeded $35,000.

Real Estate Investor
Deferred $89,000 in taxes

Hermosa Beach Investor Executes 1031 Exchange After Rental Sale

A Hermosa Beach real estate investor sold a rental property they had held for 8 years, generating $310,000 in capital gain. Without planning, they faced $89,000 in combined federal and California capital gains tax. KDA structured a 1031 exchange into two smaller rental properties, deferring the entire tax liability. KDA also identified a cost segregation opportunity on one of the replacement properties that generated $31,000 in first-year bonus depreciation, creating a paper loss that offset other rental income.

See more client case studies →

Real outcomes from KDA clients across California. Individual results vary based on income, entity structure, and tax situation.

Also Serving Nearby Los Angeles County Cities

In addition to Hermosa Beach, KDA serves clients throughout Los Angeles County, including: Redondo Beach, Manhattan Beach, Torrance, El Segundo, and more. View all city guides →

Frequently Asked Questions

Tax Questions from Hermosa Beach Business Owners & Residents

These are the questions KDA gets most often from Hermosa Beach clients. If your question isn't here, book a free consultation.

I just formed an LLC in Hermosa Beach — what taxes do I owe?
Congratulations on your new Hermosa Beach LLC. Here's what you owe California: (1) $800 annual minimum franchise tax to the FTB, due the 15th day of the 4th month after formation — even if you made no money; (2) quarterly estimated tax payments to both the IRS and FTB based on projected net income; (3) self-employment tax of 15.3% on net profit up to $168,600 and 2.9% above that; (4) gross receipts fees if annual revenue exceeds $250,000. KDA helps new Hermosa Beach LLC owners understand and plan for all of these from day one.
KDA serves Hermosa Beach and all of Los Angeles County with licensed CPAs and Enrolled Agents. We specialize in California tax law, business entity optimization, IRS and FTB audit defense, and strategic tax planning. We offer both in-person consultations at our La Palma, CA office and virtual consultations via video call for Hermosa Beach clients. Book a free consultation at kdainc.com/book-a-consultation.
For most Hermosa Beach business owners with net profit over $60,000-$80,000, an S Corp election saves significant money on self-employment tax. However, California charges a 1.5% franchise tax on S Corp net income (minimum $800), which changes the math compared to other states. KDA runs the exact numbers for your Hermosa Beach business — use our free LLC vs S Corp Calculator for an estimate, then book a consultation for a precise analysis.
When you sell a rental property in Hermosa Beach, you owe: (1) federal capital gains tax — 0%, 15%, or 20% depending on your income; (2) California capital gains tax — taxed as ordinary income at up to 13.3%; (3) depreciation recapture — taxed at 25% federally on all depreciation you've taken. On a property with $300,000 in gain, total taxes can exceed $90,000. A 1031 exchange can defer all of this. Contact KDA before you close — once the sale is complete, your options are limited.
If you receive an IRS or FTB audit notice in Hermosa Beach, do not respond directly without professional representation. KDA's Enrolled Agents are licensed to represent taxpayers before both the IRS and California FTB. We handle all correspondence, document gathering, and negotiations. Early professional representation consistently produces better outcomes than self-representation — and KDA's fee is typically far less than the additional taxes and penalties that result from unrepresented audits.
For self-employed Hermosa Beach business owners, a Solo 401(k) is typically the most powerful retirement savings vehicle — allowing contributions up to $69,000 per year ($76,500 if over 50) in 2024. Contributions are deductible against both federal and California income tax. A SEP-IRA allows up to 25% of net self-employment income (max $69,000) with simpler administration. KDA helps Hermosa Beach self-employed clients choose and set up the right plan to maximize tax savings.
Yes. KDA specializes in California FTB matters including FTB audits, FTB notices, back tax resolution, installment agreements, offers in compromise, and FTB residency disputes. California's FTB is one of the most aggressive state tax agencies in the country — having professional representation is critical. KDA represents Hermosa Beach taxpayers before the FTB at all stages, from initial notice through appeal.
KDA serves all Hermosa Beach ZIP codes including 90254. We serve clients throughout Los Angeles County and all of California. We offer both in-person consultations at our La Palma, CA office (conveniently located in Orange County) and virtual consultations via video call — so location within Hermosa Beach is never a barrier to getting expert California tax help.
Serving Hermosa Beach & All of Los Angeles County

Ready to Pay Less Tax in Hermosa Beach?

KDA's licensed CPAs and Enrolled Agents serve Hermosa Beach business owners, investors, and self-employed professionals. Whether you need tax prep, LLC setup, audit defense, or a full tax strategy — we're ready. Book a free consultation and find out exactly how much you could save.

Book a Free Consultation Try the LLC vs S Corp Calculator