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winktax
winktax, Enrolled Agent
Category: Tax
Satisfied Customers: 425
Experience:  18 years experience as an Enrolled Agent, insurance agent, stock broker and financial advisor.
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Can a Florida resident and owner of a Florida LLC/S-corp that

Resolved Question:

Can a Florida resident and owner of a Florida LLC/S-corp that is to be established be its sole Director, sole share holder, and employee?
Submitted: 5 years ago.
Category: Tax
Expert:  winktax replied 5 years ago.

winktax :

Yes.

winktax :

A single member LLC may choose the tax status as that of an S-Corporation.

winktax :

As an S-corporation there will be no tax at the LLC/S-corp level, all profit and loss will flow thru to the single member/shareholder and be reported on their individual tax return.

winktax :

As an S-corporation there is a rule that the owner/employee be paid a reasonable wage, as such it is allowed that the single member/shareholder will also be an employee of the S-corporation. Code section IRC 3121(d) defines as employee in part as any officer of a corporation.

winktax :

I hope the above answers your question. If so please click the accept button. Otherwise please provide additional information and or clarifying questions so that I can provide a more specific answer.

Customer:

Confused? is the owner paid as an offiicer or employee?

Customer:

thanks for this the earlier reply

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