The application of self-employment tax to limited liability companies: a critical analysis

One of the significant issues that has arisen in connection with limited liability companies (LLCs) electing to be taxed as a partnership is the application of self-employment tax to its members. The issue of when an LLC member's distributive share of LLC income is subject to self-employment ta...

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Bibliographic Details
Published inJournal of applied business research Vol. 23; no. 3; pp. 87 - 93
Main Author Koski, Timothy R
Format Journal Article
LanguageEnglish
Published 01.01.2007
Subjects
Business organization
Business studies
Corporation law
Legal aspects
Liability
Self-employed workers
U.S.A
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Summary:One of the significant issues that has arisen in connection with limited liability companies (LLCs) electing to be taxed as a partnership is the application of self-employment tax to its members. The issue of when an LLC member's distributive share of LLC income is subject to self-employment tax has not been definitively answered. This paper reviews the current rules on when an LLC member's distributive share of LLC income is subject to self-employment tax and analyzes proposals that have been made to clarify the law in this area.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0892-7626