Home: Message List - Does an LLC need to pay Self Employment taxes?

Re: Does an LLC need to pay Self Employment taxes?

LUCKIEST — Sat, 29 Dec 2007 19:25:10 GMT

Thanks b55. This is the first time that I have heard about this "check the box" regulation.
Always learning something new. Thanks
LUCKIEST

Re: Does an LLC need to pay Self Employment taxes?

bodonnell55 — Sat, 29 Dec 2007 18:33:29 GMT

The tax status of an LLC is optional in that the LLC can choose to be taxed as an association (as a corporate entity) or a partnership. The partnership entity is a pass-through entity and the members of the LLC would pay self-empolyment taxes. If the LLC chooses to be taxed as a corporation, then the corporation would pay the payroll taxes of 7.65% on the members earning. This is called "check the box" regulation.

Re: Does an LLC need to pay Self Employment taxes?

42n8lady — Sat, 29 Dec 2007 08:56:23 GMT

What Luckiest wrote is true. As a limited partner, whatever split of the income you receive will have to be entered in your personal tax return. A LLC is a pass through entity.

Re: Does an LLC need to pay Self Employment taxes?

BDS INC — Tue, 30 Oct 2007 16:40:21 GMT

The short answer is yes but definitely contact your accountant.

Re: Does an LLC need to pay Self Employment taxes?

Sunkist — Tue, 30 Oct 2007 15:15:54 GMT

You are regarded as a Sole Proprietor for tax purposes and your business income is subject to self empoyment taxes.

Re: Does an LLC need to pay Self Employment taxes?

Excellent — Tue, 30 Oct 2007 14:39:00 GMT

I'm an LLC with no partners and was instructed, by an attorney, to check off "disregard entity". What does that mean in regards to self employment taxes?

Re: Does an LLC need to pay Self Employment taxes?

Pablo14 — Mon, 29 Oct 2007 14:57:24 GMT

Thank you. This is what I thought. I am in the process of speaking with an accountant. Thanks.

Re: Does an LLC need to pay Self Employment taxes?

martin1sanche — Mon, 29 Oct 2007 18:13:21 GMT

1040

Re: Does an LLC need to pay Self Employment taxes?

martin1sanche — Mon, 29 Oct 2007 18:10:05 GMT

1040

Re: Does an LLC need to pay Self Employment taxes?

Pablo14 — Mon, 29 Oct 2007 14:56:14 GMT

Thank you. I am in the process of speaking to an accountant. Thanks again.