10-31-2005, 09:30 AM
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 Re: LLC Member Employee Question Dan wrote: - quote - > I have read that members of an LLC are not considered
True, at least for LLCs taxed as disregarded entities or> employees even if they hold an operations job in the LLC. partnerships. - quote - > Thus legally the wages that a member receives from a LLC say
False. In a partnership-LLC, members can take guaranteed> for being sales manager are not tax deductible in the sense > of being subtracted from LLC revenue to determine LLC > profit. payments, which are deductible at the LLC level. In a corporation-LLC, members can take true wages, which are deductible at the LLC level. - quote - > But I don't understand why this is so.
Because Congress says so?Phoebe  << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#-1
10-28-2005, 04:14 AM
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| LLC Member Employee Question I have read that members of an LLC are not considered employees even if they hold an operations job in the LLC. Thus legally the wages that a member receives from a LLC say for being sales manager are not tax deductible in the sense of being subtracted from LLC revenue to determine LLC profit. But I don't understand why this is so. Is this to prevent abuse of inflated salaries where the LLC say always breaks even so the is no profit to be taxed? Please enlighten me as I am confused. TIA, Dan << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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| employee, llc, member, question |
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