Discussion:One member LLC deducting his wages on Sch C

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Revision as of 17:19, 26 June 2006
Taxref (Talk | contribs)
(It is improper t)
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Warren (Talk | contribs)
(A sole member LL)
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{{ForumReplyPost|UserID=Taxref|Date=26 June 2006|Text=It is improper to do so, assuming the LLC has not elected to be taxed as a corporation (in which case Sch. C would not be used at all). Potential for major problems may exist if a retirement plan is involved.}} {{ForumReplyPost|UserID=Taxref|Date=26 June 2006|Text=It is improper to do so, assuming the LLC has not elected to be taxed as a corporation (in which case Sch. C would not be used at all). Potential for major problems may exist if a retirement plan is involved.}}
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 +{{ForumReplyPost|UserID=Warren|Date=26 June 2006|Text=A sole member LLC should not pay wages to member if it hasnt elected to be taxed as a corporation.}}

Revision as of 17:33, 26 June 2006

Discussion Forum Index --> Tax Questions --> One member LLC deducting his wages on Sch C

Pjnieves (talk|edits) said:

26 June 2006
What's the impact from the IRS standpoint? Employment taxes on the LLC for the wages paid to member? Otherwise. what other impact on 1040 if any?

Taxref (talk|edits) said:

26 June 2006
It is improper to do so, assuming the LLC has not elected to be taxed as a corporation (in which case Sch. C would not be used at all). Potential for major problems may exist if a retirement plan is involved.

Warren (talk|edits) said:

26 June 2006
A sole member LLC should not pay wages to member if it hasnt elected to be taxed as a corporation.
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