I am the manager partner in an LLC and the only active member. There are no employees in the company. To date the LLC has paid me a larger distribution than the other members as compensation for my duties and the other members have paid taxes on this additional money in proportion to their ownership in the LLC. The business is not a full time job for me. I work on behalf of the LLC in the evenings and on the weekends as I have a full time job which draws a salary, medical benefits, etc. during normal business hours.
Our LLC now wants to move me to a salaried position which will lessen the tax burden of the other shareholders. I are uncertain of how to pay taxes for the salaried compensation in this scenario. Can you share what options you see? Self-employment? Payroll taxes? Other?
