Disregarded Entity

[Super Mom]

Does a single member LLC, that has elected to be taxed as a disregarded entity with a C, need to have the owner on payroll as an officer? I'm thinking no, but is that right?

[Lion]

No. Should NOT have owner on payroll. LLC is disregarded as a separate entity for tax purposes and falls back on the individual, in this case, as if there were no LLC. Sole Proprietor for tax purposes. Schedule C. Profits will be taxable for income tax and SE tax. Quarterly Estimated Payments. Limited Liability for legal purposes. (Well, depending on the type of business, could be a Sch F or E, but still no salary.)

[Super Mom]

No. Should NOT have owner on payroll. LLC is disregarded as a separate entity for tax purposes and falls back on the individual, in this case, as if there were no LLC. Sole Proprietor for tax purposes. Schedule C. Profits will be taxable for income tax and SE tax. Quarterly Estimated Payments. Limited Liability for legal purposes. (Well, depending on the type of business, could be a Sch F or E, but still no salary.)

Thanks, that's what I thought, just wanted to be sure!! Have a great day!!!