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Updated over 5 years ago on . Most recent reply
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Can you have an LLC Partnership where 1 member is a contractor?
In an LLC taxed as partnership, can 1 of the partners be an independent 1099 contractor to provide services for the business?
For example:
Partner #1 Limited Partner (K-1)
Partner #2 Limited Partner (K-1) AND 1099 Contractor - Basically receiving payments as a contractor for running the majority of the business, and as a limited partner (which would account for any money beyond the 1099 payments)
Or does this have to be structured differently for tax purposes?
Thank you in advance to anyone who is so kind as to share their time and wealth of knowledge with me!
Most Popular Reply
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I agree with Carl Fischer above - you can absolutely do that. You can change ownership interests to compensate one party vs the other (depending on the value of $ vs. services to be provided), or you can simply pay the contractor for services rendered.
Chatting with your attorney and CPA is absolutely recommended so you get the best path forward for profit and protection.