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Joseph, Lawyer
Category: California Employment Law
Satisfied Customers: 5299
Experience:  Extensive experience representing employees and management
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As equal third partners in an LLC are we to be considered employees,

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As equal third partners in an LLC are we to be considered employees, by virtue of it being an LLC or do we consider salaries not on a per hr basis but separate ourselves by duties.
For example one of us must be the President per se another the HR or Finance Mgr one as Marketing etc.
Hello and welcome to JustAnswer.

Yes, if you draw a salary from the company, you would be considered employes of the company. However, it's not necessary for you to all do separate duties (i.e. one of you President, another HR manager, and another Finance Manager), as all these duties could be shared between the three of you.
Customer: replied 4 years ago.

This follow up question goes to whether we should pay ourselves by the hour i.e. punch in like our employees or keep a "record of hours" or consider one dept may require 30 to 50 hrs depending on the time of the month (payroll etc.) another may be only 20 - 30 hrs per and Administration a steady 40 hrs . Or as partners be paid as such. I don't mean all three should get the same salary only should it be on an hourly basis

No, the salaries do not need to be paid on an hourly basis, since you would all meet the requirements for being exempt employees.

You can make the salaries different depending on the demands of each position that each partner will assume.

Additionally, since you are the owners, there would be no reason to pay yourselves on an hourly basis.

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