Legal Question in Business Law in Utah
LLC Owner as an Employee
Is it okay for an owner of an LLC to also be set up as an employee of the LLC? I need to do this to bring in a broker.
Asked on 4/08/05, 12:56 pm
1 Answer from Attorneys
Alvin Lundgren
Alvin R. Lundgren, L.C.
Re: LLC Owner as an Employee
A LLC is a business form. A business form can employ anyone, including owners. An owner may draw a salary or wage as well as dividends or bonuses on the business profits.
If you have a LLC and are bringing on a new employee-owner, it is imperitive that you prepare an operating agreement that establishes the rules by which the owners conduct business. Without an operating agreement you can have big problems if and when there are future problems or changes in the operation of the LLC.
Answered on 4/08/05, 3:12 pm
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