Limited Liability Companies
The treatment of a Limited Liability Company (LLC) under Florida
reemployment law depends on how the LLC files its federal income tax
return.
If the LLC files its federal income tax return as a:
-
C corporation or an S corporation, the LLC is treated as a
corporation and members of the LLC are employees if they perform
services for the LLC. A member of an LLC who performs services for
an LLC classified as a corporation for federal income tax purposes
is deemed by law to be an employee of the LLC and should be reported
on the LLC’s
Employer's Quarterly Report
(Form RT-6
).
-
Partnership, the LLC is treated as a partnership and members
are regarded as partners. Members would not be employees and their
wages would not be taxable wages in Florida. If the LLC filing its
federal income tax return as a partnership has other employees, the
LLC itself must register and pay tax on the wages paid to the other
employees, unless the wages are exempt for another reason.
Wages are exempt if paid to an individual employed by his or her
son, daughter, or spouse, including step relationships. In addition,
wages paid to a child, or stepchild, under the age of 21 employed by
his or her father, mother, stepfather, or stepmother are also
exempt. For a partnership, the family member employed must have the
same relationship to all partners to be exempt. For example, a son
would have to be the son of all, not just some, of the partners to
be exempt. Similarly, a father would have to be a father to all of
the partners to be exempt.
-
Sole proprietor, the LLC is treated as a sole proprietor. The
single member/owner is not an employee and his or her wages would
not be taxable wages in Florida. If the LLC filing its federal
income tax return as a sole proprietor has other employees, the LLC
itself must register and pay tax on the wages paid to the other
employees, unless the wages are exempt for another reason.
Wages are exempt if paid to an individual employed by his or her
son, daughter, or spouse, including step relationships. In addition,
wages paid to a child, or stepchild, under the age of 21 employed by
his or her father, mother, stepfather, or stepmother are also
exempt. As provided in s. 443.036(20)(d), F.S., a single member LLC
is the employer required to register and report employee wages and
pay the tax even if it is a disregarded entity for federal income
tax purposes.
Reference: Section 443.036(20), Florida Statutes
