I truly aim to please you as a customer, but please keep in mind that I do not know what you already know or don't know, or with what you need help, unless you tell me. Please consider that I am answering the question or question that is posed in your posting based upon my reading of your post and sometimes misunderstandings can occur. If I did not answer the question you thought you were asking, please respond with the specific question you wanted answered.
Kindly remember the ONLY WAY experts receive any credit at all for spending time with customers is if you click on OK, GOOD or EXCELLENT SERVICE even though you have made a deposit or are a subscription customer. YOU MUST COMPLETE THE RATING FOR THE EXPERT TO RECEIVE ANY CREDIT, if not the site keeps your money on deposit.
Also remember, sometimes the law does not support what we want it to support, but that is not the fault of the person answering the question, so please be courteous.
Thank you for your answer. Our understanding of the LLC is that we are not allowed to have "wages" only guaranteed payments. As such these are not wages and need to have self employment tax paid on them fully by the individual. In the S Corp you can become an employee and this changes to the business paying half of the Social Security. Is this not true? Can the LLC set itself up in a manner that the owner/member can become an employee of the business?
IN so far as the unemployment. Our business operates about 7-8 months a year. The remainder there is so little possibility of work (we build kit homes and folks are just not building in the winter months) that we shut down for these months other than fielding calls on potential customers. DO you think this is acceptable as "no fault of the owners" and would make us "employees" eligible for benefits?
Thank you once again.
You mention that we should seek to tax ourselves (under the LLC) like a corporation. Would you please explain this further? How does a corporation tax itself differently? Presently we pay no tax for the business whatsoever.
Presently with our "guaranteed" payments we pay them out like they are wages, every two weeks. IN actuality the are compensation for actual hours spent working. With a salary, isn't this a base pay with out variation or can we do basically the same and pay a bi-monthly "draw" on the "salary" which in reality would be based on hours worked in that time period?
I have been conversing with a CPA at the same time I have been with you. IN regards XXXXX XXXXX form 8832 you recommended, they said the real form we need to use is 2553 in order to use corporate tax structure for out LLC. Are they missing something or are these two basically the same? Could you help clarify this? From what I have read form 8832 is to from a C Corp.
Thank you for your response.This is the problem sometimes with CPA's. Please click on the link above that says Form 8823, that is the IRS website and it specifically tells you step by step what to do and the IRS tells you to file the 8823 as an LLC to be taxed as a corporation. The Form 2553 is not for that and I think you may have misunderstood what the CPA stated. Look at the link I provided to the IRS where I typed in previous response to you Form 8823 and you will see that it is the form to choose to have your LLC taxed like a Corporation, the form 2553 is for an S-corp conversion.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).