LLCs and S Corporations: Mitigating Self-Employment Tax for Flow-Through Entities
Recording of a 110-minute CPE webinar with Q&A
This course will assist tax professionals in determining whether flow-through income should be subject to self-employment tax. Our veteran pass-through entity panelist will explain how reasonable compensation, payments to partners, and management authority status affect whether an owner's distributive share of income from a pass-through entity is subject to self-employment tax. He will examine how the recent Soroban case impacts self-employment tax and limited partners.
- Overview of self-employment tax on pass-through income
- S corporations
- Self-employment tax considerations
- Reasonable compensation
- Weighing S corporation status
- LLCs and partnerships
- The limited partner exception: law and recent cases
- Planning implication
- Possible legislative changes
The panel will cover these and other critical issues:
- When should an LLC member's flow-through income be reported as self-employment income?
- How can payments to partners be structured to mitigate self-employment tax?
- When do the disadvantages of S corporation status outweigh the potential self-employment tax savings?
- The impact of the tax court ruling in Soroban Capital Partners on taxation of limited partners' interests
- How might future legislative changes affect planning for self-employment taxes for LLCs and S corporations?
Larry Pon, CPA/PFS, CFP, EA, USTCP, AEP
CPA/PFS, CFP, EA, USTCP, AEP
Pon & Associates
Pon & Associates, a CPA firm, has been proudly serving the San Francisco Bay Area since 1996. ... | Read More
Pon & Associates, a CPA firm, has been proudly serving the San Francisco Bay Area since 1996. We are a full service CPA and accounting firm providing accounting, tax, payroll and business advisory services. We specialize in tax preparation, tax representation, tax planning, business planning, financial planning, and estate planning.Close
Access Anytime, Anywhere
CPE credit is not available on downloads.