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    3 Replies Latest reply on Jun 10, 2009 1:16 AM by harmon_smith

    2-member LLC

    west23 Wayfarer
      My wife and I will get into a little tiny business soon. I wonder that which one is better: let her do it alone, single LLC, and I work for her; or make it 2-member LLC.? What a bout the monthly wage for 2 members? And tax issues?

      Thanks for advices.
        • Re: 2-member LLC
          impexp Newbie
          LLC could be a single member or a multiple member. When it is a single member LLC, the member will take into account the profit and it will become taxable. LLC will not pay any tax, it is the member who pays the taxes from all the profit gained. As with the 2 member LLC, it will be the same principle. Based on the shares you have with the LLC, your tax will be based on the profit gained from the business.
          1 of 1 people found this helpful
          • Re: 2-member LLC
            harmon_smith Wayfarer
            A single owner LLC is to be treated like a sole proprietorship for tax
            purposes means that you have to pay the 15.2 percent self-employment tax
            if you are the proud owner of a single owner LLC. Most people don't
            know this when they decide to form the entity and they get a very nasty
            surprise when it is time to pay.
            If you want to form a single owner LLC, there is nothing wrong with
            that. Just make sure you understand self-employment tax will be due and
            you have the money to pay it.For more information check my this site