Legal Question in Business Law in New Jersey

I am thinking of starting a LLC here in the state of NJ. Do All members receive a paycheck with same deductions as the rest of the company employees? And are they, members, eligible to receive unemployment compensation when not taking a paycheck? Or can LLC be set up any way you like? Some member on payroll and some not?


Asked on 10/26/09, 1:23 pm

2 Answers from Attorneys
Jef Henninger, Esq Law Offices of Jef Henninger, Esq.

I suggest you sit down with an attorney to discuss these issues and everything. It is a good investment. I can refer you to a good one. Just drop me a line.

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Answered on 10/31/09, 3:03 pm
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

Multiple Member Limited Liability Companies are generally treated as a Partnership for US and State income tax purposes. That means the LLC files a 1065 Partnership tax return and the income and losses are treated as partnership distributions not as W-2 salary income. There are no withholdings.The exception is if a member does stated services for a fixed amount separate from the partnership draw.

The Members do not need to pay unemployment taxes and are ineligle to receive unemployment payments.

I hope this helps!

Ron Cappuccio

http://startallc.com

856-665-2121

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Answered on 10/31/09, 5:37 pm


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