Legal Question in Business Law in California

Payments to members of LLC for work performed

A software company, set up as an LLC, has several members. One of these members owns 60% of the company. No other members own more than 10% each. All of these members work for the LLC and would like to be paid fair compensation for this work performed. Question - Is this allowed under Calif law? Does the fact that the company is structured as an LLC and that these "workers" are also members affect the individuals or the company with respect to the payment of wages to them?


Asked on 3/03/00, 1:07 pm

1 Answer from Attorneys
Scott Shabel Law Offices of Scott Lee Shabel

Re: Payments to members of LLC for work performed

There are no legal restrictions on the payment of wages to members of an LLC in California, although there may be negative tax ramifications. To find out more, visit our website @ www.labusinesslawyer.com

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Answered on 3/16/00, 9:36 am


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