Limited Liability Company(LLC)

Owners are called members, most states dont restrict ownership so that members may include individuals, partnerships, corporations, foreign entities and other LLCs.

There is no maxium number of members. LLCs are like a mix between corporation and a sole propriator or partnership.

Seperate from owners, members not personally liable for debt

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Pay estimated taxes every quarter, IRS suggest owners pay 90% of total tax obligations, failure will cause estimated tax penalty.

LLCs with more than 1 member use form 1065.

To elect how it will be classified form 8832

To elect as S corp must fie form 2553.

Paying yourself as an employee means you have to pay yourself a reasonable salary and have the business withhold taxes from your paycheck(any entity).

Owners pay self employment tax, employee and employer portion.

Medicare 2.9%

Social security 12.4%