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LLCs are passthrough entities so you pay what your personal rate. You still pay self employment tax however this might spur some to change their structure to be
by chriogenix 9y ago
LLCs are passthrough entities so you pay what your personal rate. You still pay self employment tax however this might spur some to change their structure to benefit from new tax proposal
Edit: there is also a proposal to change how partnerships and pass through entities are to be taxed.
- iamacynic 9y ago> LLCs are passthrough entities they can be, but a lot aren't.
- chriogenix 9y agoThey can elect to be taxed as a c Corp but I would think the vast majority are taxed as a corps or as partnerships.