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#2
04-12-2007, 04:06 AM
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 Re: Member Active in LLC and Self Employment Tax "Stuart A. Bronstein" <spamt...[at]lexregia.com> wrote: - quote - > "helpwithasmile" <mich...[at]helpwithasmile.com> wrote:
Partnership- income passes through to multiple members,> > Easy question, probably... > Wishful thinking. ;-) > > If a member of an LLC is also active in the business and > > being paid a regular salary as an employee, do Self > > Employment taxes apply only to the portion of income > > resulting from the member's share of the profits, or does it > > also apply to the member's salary as well? > Is the LLC taxed as a proprietorship, partnership, > C-corporation or S- corporation? divided according to the operating agreement. << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- > |
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#1
04-12-2007, 04:06 AM
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| Re: Member Active in LLC and Self Employment Tax "helpwithasmile" <michael[at]helpwithasmile.com> wrote: - quote - > Easy question, probably...
Unless the LLC has elected to be taxed as a corporation, and> If a member of an LLC is also active in the business and > being paid a regular salary as an employee, do Self > Employment taxes apply only to the portion of income > resulting from the member's share of the profits, or does it > also apply to the member's salary as well? it doesn't sound like it has, a member CANNOT be an employee. So he/she cannot have any taxes taken from a salary (guaranteed payments, in partnership accounting), does not receive a W-2, and must pay his/her own taxes. This includes the self-employment tax on the salary/guaranteed payments and distributions of partnership items. The LLC does not pay the employer's half of social security taxes, so everything is subject to self-employment tax. Lanny K. Williams, CPA Nawarat, Williams & Co., Ltd. Income Tax Services for Expatriate Americans << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- > |
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04-10-2007, 01:47 PM
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| Re: Member Active in LLC and Self Employment Tax "helpwithasmile" <michael[at]helpwithasmile.com> wrote: - quote - > Easy question, probably...
Wishful thinking. ;-)- quote - > If a member of an LLC is also active in the business and
Is the LLC taxed as a proprietorship, partnership,> being paid a regular salary as an employee, do Self > Employment taxes apply only to the portion of income > resulting from the member's share of the profits, or does it > also apply to the member's salary as well? C-corporation or S- corporation? Stu << ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
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#-1
04-09-2007, 07:10 AM
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| Member Active in LLC and Self Employment Tax Easy question, probably... If a member of an LLC is also active in the business and being paid a regular salary as an employee, do Self Employment taxes apply only to the portion of income resulting from the member's share of the profits, or does it also apply to the member's salary as well? Thanks! Michael << ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
| Tags |
| active, employment, llc, member, tax |
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