Do i have to pay self exployment tax on salary i recieve from my disregarded llc if i have a have a overall loss in income

abysass · ‎May 31, 2019

pk · ‎May 31, 2019

you cannot be an employee of a dis-regarded entity -- you are sole proprietor and report entity incomes and expenses on schedule-C

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SweetieJean · ‎May 31, 2019

The only way to avoid this is to elect to be treated as a corporation. This election is made by filing Form 8832. Did you do so?

TomYoung · ‎May 31, 2019

If your LLC is really a "disregarded" entity then you should not be taking a "salary" or "wages" from the LLC. The LLC is disregarded and all its income or loss, with any "wage" or "salary" not counted as an expense, is reported by you on your own Schedule C. If the "bottom line" of the Schedule C is positive (income) then that's your income and that's the starting point for calculating Self Employment tax.

Tom Young

Hal_Al · ‎May 31, 2019

What if he has two schedule C's. Is SET calculated on each one separately or on the net income from both?

VolvoGirl · ‎May 31, 2019

Self employment tax is on all sch C (per taxpayer) so they would be combined and take into account any W2 SS box 4.

Do i have to pay self exployment tax on salary i recieve from my disregarded llc if i have a have a overall loss in income

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