About eyes of your Irs a keen LLC shall be taxed once the a sole proprietorship, a collaboration, otherwise a business. The principles informed me above often apply at how Patty is pay by herself just like the a keen LLC when the the woman is taxed because the a sole holder or relationship.

If the Patty’s catering providers was basically set up because an enthusiastic S Corp, next she would determine a fair payment toward style of away from work she really does and pay by herself an income. Not to ever raise people red flags into the Irs, the lady income can be similar to what folks during the similar positions during the others earn.