Members as Employees of LLCs: Using Tiered LLCs, Separate S Corporations, and Leasing Companies to Pay Owners
Recording of a 110-minute CPE webinar with Q&A
This course will discuss specific scenarios where LLC owners can be treated as employees for tax purposes. Our panel of flow-through taxation veterans will discuss structuring alternatives that permit members of an LLC to qualify for employee treatment, including the use of employee leasing arrangements, tiered LLC structures and admission of separate S corporations.
Outline
- Withholding for Employees
- Guaranteed Payments to Members
- Potential Consequences of Incorrect Treatment
- Employee Leasing Companies
- Separate S Corporations
- Tiered LLCs
- Pros and Cons of Alternatives
- Employee Fringe Benefit Consideration
Benefits
The panel will cover these and other critical issues:
- Guaranteed payments to members
- Potential consequences of incorrect treatment
- Alternatives to permit employee treatment of LLC owners
- Employee fringe benefit consideration
Faculty

Richard E. Aderman
Partner
Taft Stettinius & Hollister
Mr. Aderman focuses his attention on analyzing the tax consequences of complex business transactions, including... | Read More
Mr. Aderman focuses his attention on analyzing the tax consequences of complex business transactions, including corporate mergers and acquisitions, partnership transactions, trusts, and public and private debt and equity offerings. He has special expertise in the tax aspects of LLCs, partnerships, REITs, private investment funds, employee benefits, and executive compensation. Mr. Aderman also advises clients regarding tax and non-tax business structuring issues arising in the course of operations and in connection with transactions.
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Benjamin W. Hager
Partner
Taft Stettinius & Hollister
Mr. Hager's practice includes the areas of business entity formations, mergers and acquisitions, reorganizations,... | Read More
Mr. Hager's practice includes the areas of business entity formations, mergers and acquisitions, reorganizations, operational tax issues and tax-efficient restructuring and exit strategies. A substantial part of his practice involves joint ventures, limited liability companies and partnerships, including within the context of venture capital, private equity and real estate equity funds.
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CPE On-Demand