Self-Employment Taxes for Partners and LLC Members

Limited liability companies (LLCs) are a popular choice of entity for small businesses and investment activities. LLC owners are called members. Here’s a question: Does a member of a limited liability company (LLC) or a partner in a partnership have to pay...

Self-Employment Tax Basics

If you own an unincorporated business, you likely pay at least three different federal taxes. In addition to federal income taxes, you must pay Social Security and Medicare taxes, also called the self-employment tax. Self-employment taxes are not insubstantial....

Paying Your Child: W-2 or 1099?

Working at a tender age is an American tradition. Here’s what you need to know about paying your kids properly. Question Here’s a question I received from one of my clients: “I will hire my 15-year-old daughter to work in my single-member LLC business, and I expect to...

Deduct a Cruise to Mexico

You may not have thought of this, but taking a cruise ship to Mexico for a business meeting is acceptable as a deductible form of transportation. Because Mexico is in the tax law–defined North American area, the law says that you need no stronger business reason to...

Partnership with Multiple Partners: The Good and the Bad

The generally favorable federal income tax rules for partnerships are a common reason for choosing to operate as a partnership with multiple partners instead of as a corporation with multiple shareholders. The most important partnership tax benefit rules can be...