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March 14, 2023
Question

Guaranteed payments vs self employment tax benefits

  • March 14, 2023
  • 1 reply
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Can someone tell me if my personal tax burden is lower if my LLC pays guaranteed payments vs simply taking all of the profit as self employment income?

 

1 reply

March 14, 2023

No.

 

Guaranteed payments from your LLC are subject to income tax and also subject to self-employment tax.

 

Please read this IRS document for more information.

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