|
Posted by helpwithasmile on April 9, 2007, 3:10 am
Please log in for more thread options
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. >>
<< ======================================================= >>
|
|
Posted by Stuart A. Bronstein on April 10, 2007, 9:47 am
Please log in for more thread options
> 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?
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. >>
<< ======================================================= >>
|
|
Posted by helpwithasmile on April 12, 2007, 12:06 am
Please log in for more thread options >> 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?
Partnership- income passes through to multiple members,
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. >>
<< ------------------------------------------------------- >>
|
|
Posted by L K Williams on April 12, 2007, 12:06 am
Please log in for more thread options
> 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?
Unless the LLC has elected to be taxed as a corporation, and
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. >>
<< ------------------------------------------------------- >>
|
| Similar Threads | Posted | | active vs non-active participant in 401(k) | December 28, 2006, 12:07 am |
| Single member LLC | January 20, 2008, 1:18 am |
| LLC member salaries uneven? | November 10, 2006, 5:29 pm |
| A foreign partner (member) in a LLC | March 27, 2008, 11:15 pm |
| LLC foreign member tax problem | April 16, 2006, 2:29 am |
| LLC Tax Question - Member exiting the business | November 26, 2006, 10:54 am |
| Death of a owner of a Single Member LLC | January 18, 2008, 7:41 pm |
| Renting building owned by LLC to LLC member | February 16, 2008, 1:11 am |
| Tax Implications of LLC & Corp. member removal... | July 16, 2008, 7:28 pm |
| Re: Expenses as association board member not deductible?!?! | September 26, 2006, 2:34 am |
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap