Comments on: How Limited Liability Companies (LLCs) Are Taxed

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Sat, 26 Nov 2011 09:32:16 +0000

You actually make it appear really easy together with your presentation but I to find this topic to be really something which I feel I’d by no means understand. It seems too complex and extremely extensive for me. I’m having a look ahead on your next publish, I’ll try to get the hang of it!

By: John Campbell

John Campbell — Thu, 08 Sep 2011 17:50:41 +0000

Are LLC’s taxed as partnerships considered passive activities for their managing members?

By: ajay

ajay — Sat, 06 Nov 2010 01:56:59 +0000

I formed LLC for rental unit. My wife and I are 50/50 members of the LLC. We don’t have any employee. We both file join income tax return. Do we need to get FEIN? Or we can use our SS number and file for schedule C?

By: Jack

Jack — Wed, 30 Jun 2010 23:41:53 +0000

I also have similar questions to GG Kay’s comments. Does an LLC that has a husband and wife as its only members get treated like a sole proprietorship LLC or a partnership LLC? It seems like it would be less complicated if it’s treated as a sole proprietorship LLC.

By: How Corporations are Taxed

How Corporations are Taxed — Wed, 24 Feb 2010 19:12:25 +0000

[...] that must pay its own income taxes on profits. In contrast, partnerships, sole proprietorships and limited liability companies (LLCs) are not taxed on business profits; instead, the profits “pass through” the businesses [...]

By: Corey Rosen

Corey Rosen — Wed, 02 Sep 2009 23:46:32 +0000

One of the questions that often comes up in an LLC is whether you can share equity with employees. For many years, the most common advice on sharing equity with employees in a limited liability company (LLC) has been “switch to S corporation status instead.” The argument was that it was too complicated to share equity in an LLC. Yet many LLC leaders want to share equity with employees and have very good reasons for retaining their company’s status as an LLC. When we at the NCEO asked experts in employee ownership law if it were possible to share equity in an LLC, the usual response was “yes, but it is complicated.” No one seemed to want to go into too much detail about just what these complications were, however.

In fact, LLCs can create options-like instruments called “profits interests” and restricted stock-like instruments called “capital interests,” or they can create plans that mimic stock appreciation rights or phantom stock.

The National Center for Employee Ownership has now published a new book on this topic called Equity Compensation in Limited Liability Companies. The authors are Corey Rosen, NCEO’s executive director, along withcoauthors Alan Nadel (an accountant) and Dan Janich and Brian Hector (attorneys). Details on the book are at http://www.nceo.org/main/pub.php/id/180/.

By: OH

OH — Sun, 05 Jul 2009 03:11:45 +0000

I don’t understand this Self Employment Tax for active members of the LLC. I’m the managing member of an LLC. My membership interest is 20%, and another member owns 80%. We are both active, although I will become the primary active member once start-up activities are pretty much done.

So is this self-employment tax IN ADDITION to ordinary income tax? That seems crazy. I’m busting my butt and I’m gonna get taxed even more? Also, besides sales tax, (and we have no employees), are there any quarterly filings I need to file?

By: mark

mark — Fri, 27 Feb 2009 21:32:48 +0000

Just to be clear if my wife owns 49% of the business and is not a manager or employee, she receives passive income that is not subject to self employment tax, because she in effect is a limited partner. Is that correct?

I suppose our percentage of ownerships would dictate which portion was subject to self employment tax.

By: maria

maria — Sat, 07 Feb 2009 03:23:21 +0000

my start cost me over 150k in material for the store not including inventory. to deduct this cost, does it take along time or can it be deducted right away? very important to know

By: Mark Freeman

Mark Freeman — Thu, 19 Jun 2008 18:44:47 +0000

In an LLC if members are non-resident aliens(NRA),is the LLC obligated to set aside income tax payments for the NRA members?