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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| Published in | Journal of applied business research Vol. 23; no. 3 |
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| Main Author | |
| Format | Journal Article |
| Language | English |
| Published |
16.01.2011
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| Online Access | Get full text |
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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. |
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| ISSN: | 0892-7626 2157-8834 |
| DOI: | 10.19030/jabr.v23i3.1393 |