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
