Defined Benefit Pension Consultant The Ryding Company
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NFL Player Benefit Office
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Manager - Defined Contribution Plans M2B Retirement Consulting LLC
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Senior Actuarial Analyst/ Project Manager Van Iwaarden Associates
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Retirement, LLC
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Nicholas Pension Consultants
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Senior Administrator / Site Manager Nicholas Pension Consultants
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Sentinel Benefits & Financial Group
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Compliance Analyst - 401(k) Administration Ubiquity Retirement + Savings
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Sr. Retirement Plan Administrator Tycor Benefit Administrators, Inc.
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Defined Benefit Plan Consultant Sentinel Benefits & Financial Group
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Senior Retirement Plan Administrator Enhanced Retirement Solutions
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Junior Implementation Specialist - 401(k) Administration Ubiquity Retirement + Savings
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Retirement, LLC
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Sentinel Benefits & Financial Group
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Hessel & Associates, LLC
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United Benefit Pensions Inc.
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Question 254: When is a member of an LLC considered self-employeed? Suppose Ilene is a member of an LLC who manages its staff, calculates payroll and does general accounting but does not get paid for her time. She has no IRS Form 1099 or W-2. Is she considered an employee, self-employed or just a member who works for free? |
Answer: First and foremost, whenever you deal with an LLC, you must learn how the LLC is taxed. Most LLCs with more than one member are taxed as a partnership, but some have chosen to be taxed as a corporation. LLCs with a single member are disregarded as separate entities (e.g., taxed as a sole proprietorship) if they do not elect to be taxed as a corporation. (Q 1:7. References to "Q" are to numbered questions addressed in the 3rd edition of my book, Who's the Employer; they can be viewed online by subscribers.) |
Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.
The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.
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