bzorc Posted November 13, 2003 Posted November 13, 2003 Client is a single member LLC, which has employees. Obviously the LLC can adopt a 401(k) plan, but my question is about the 100% owner. I believe that testing is done on his self-employment income, not on any salary that he may receive (supposedly he has received salary during 2003, which should be corrected). Is that correct? Thanks for any responses.
Blinky the 3-eyed Fish Posted November 13, 2003 Posted November 13, 2003 Yes, assuming the LLC is taxed as a partnership, which nearly all are. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
Guest qualified plan Posted November 13, 2003 Posted November 13, 2003 I'm not too sure, Blinky. Can't partners receive guaranteed income, which can be reportable on a Form W-2?
Ron Snyder Posted November 15, 2003 Posted November 15, 2003 Partners can received guaranteed payments, and the total of guaranteed payments and net profit from the LLC may be used for testing.
chris Posted November 16, 2003 Posted November 16, 2003 A "single member LLC" cannot be taxed as a partnership since it only has 1 member. It will taxed as a sole proprietorship.
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