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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16544
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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As an LLC organization, what is ramification to hiring an individual

This answer was rated:

As an LLC organization, what is ramification to hiring an individual who is a single member LLC himself?

MyVirtualCPA :

Thank you for your question, and thanks for using JustAnswer.com

MyVirtualCPA :

Essentially, you are doing business with an LLC and therefore this would be a contractor - you would not owe payroll taxes

MyVirtualCPA :

If you hired the individual as an employee, then you would owe payroll taxes,

MyVirtualCPA :

But, you cannot hire an LLC as an employee

Customer:

You say that we cannot hire an individual who is a single member LLC himself - right? We would be hiring him as a regular employee, what ramificatiou would his holding a single member LLC be? He is reviewing an offer from us but he wants to keep his LLC open. His LLC status would not be brought into his employment status with us in any way.

MyVirtualCPA :

If his LLC status is not brought into your business, then it doesn't matter - you can hire him as an individual

MyVirtualCPA :

him having an LLC will have no bearing on your business

MyVirtualCPA :

He can have an LLC and still work for you

MyVirtualCPA :

Is there anything else I can assist you with today?

Customer:

What kind of verbage can we put in the offer letter stating that he understands that his LLC would have no bearing on our business, or is it necessary to even do so?

MyVirtualCPA :

It's not even necessary to do so

Customer:

Thank you, XXXXX XXXXX information.

MyVirtualCPA :

You're welcome

MyVirtualCPA :

If there's nothing else you need assistance with today, Please rate my response as "excellent" so that I may receive credit for assisting you today

Megan C and other Finance Specialists are ready to help you
Terri,

Thank you for your positive rating. Please come back and visit MyVirtualCPA for any of your tax, finance, or social security needs. It was a pleasure working with you today.

Thanks again!