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Multi member LLC for real estates investment and employment tax?

I have a multi member LLC used for real estates investment. I have no employees other than the 4 member/shareholders. Do I have to pay employment tax/payroll to any distribution to the shareholders or for any work that the shareholders does for the LLC?

No. Each shareholder, including yourself, is responsible for his/her own taxes. All of the members cannot be on payroll, as you are by default, self-employed.

Make the distribution (which is an expense, by the way), the LLC will have its earnings flown down to each of the members from the partnership return. Each member will then report their share of earnings on the individual tax return.

This entry was posted on Thursday, November 19th, 2009 at 11:54 pm and is filed under real estates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “Multi member LLC for real estates investment and employment tax?”

  1. princess Says:
    November 20th, 2009 at 5:28 am

    dunno
    References :

  2. 123456789 Says:
    November 20th, 2009 at 6:01 am

    No. Each shareholder, including yourself, is responsible for his/her own taxes. All of the members cannot be on payroll, as you are by default, self-employed.

    Make the distribution (which is an expense, by the way), the LLC will have its earnings flown down to each of the members from the partnership return. Each member will then report their share of earnings on the individual tax return.
    References :

  3. Scott Says:
    November 20th, 2009 at 6:26 am

    One additional tip is to keep good records of distributions for each member. Remember that each put in cash and their accounts should be tracked in detail throughout the year.
    References :

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