3 ms·
> "Single owner LLCs are pass through entities and they have no obligations to pay minimum wage, overtime, unemployment insurance etc…" Perhaps an LLC (which i
by csmpltn 4y ago
> "Single owner LLCs are pass through entities and they have no obligations to pay minimum wage, overtime, unemployment insurance etc…"
Perhaps an LLC (which is a pass-through entity) is the wrong structure to use here then. Perhaps a C-Corp would be more suitable?
Here's one example of what I'm referring to: https://www.altinn.no/en/start-and-run-business/planning-starting/Choosing-Legal-Structure/private-limited-companies/ https://www.altinn.no/en/start-and-run-business/planning-sta...
> "If your interpretation of the law stood, every company would simply require each employee to form an LLC and pay each employee as an independent contractor."
But that's exactly how companies hire external contractors today, so I'm not sure why you're suggesting there's anything wrong here?
The reason companies don't require each and every employee to form an LLC is because it makes things more difficult for everybody - not because it's illegal. Direct employment is much easier to manage, hence it's more popular. I don't see your point?
- sarchertech 4y agoNo the reason is because it’s illegal. You can’t engage someone in an employee employer relationship and pay them as an independent contractor. >much easier manage This is patently false. Contractors are much much easier to manage. It is perfectly legal to hire contractors. There is nothing wrong with this. What you can’t do is hire a contractor and treat them as an employee. There is a legal difference. The IRS has a 20 part test.