MinhT1
Expert Alumni

Business & farm

The LLC must at least have one managing member. That managing member is responsible for the total affairs of the LLC (not just the supervision of the computers).

 

You have to pay self-employment tax on your share of the net income, not by the classification managing member/limited member, but based on whether you actively participated in the LLC. 

 

Treating the distributive share of a partner as not subject to self-employment tax presents potential risks of litigation with the IRS. Please read this article.

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