Are one-man LLCs subject to self employment taxes?

August 9, 2002

Subject:  SE/FICA
Date:  Mon, 08 Jul 2002
From:  A. Friedman

In 1998, I attended a seminar during which we were told that a one man LLC was not subject to SE/FICA under any circumstances. However, I have not been able to determine this on my own. Might you help? If so, please show citations with your answer.


A. Friedman


Date:  Wed, 31 Jul 2002

Hello A. Friedman,

The IRS has not issued any guidelines about how SE tax applies to an LLC. Preliminary regulations were withdrawn. A one-person LLC is a disregarded entity. Income from the LLC for a business will be reported on Schedule C. I think it is very risky to not report self-employment income when you are reporting on a Schedule C.

I recommend that you seek help from a CPA or tax attorney.

Good luck!
Mike Gray

For answers to new questions, subscribe to our newsletter, Michael Gray, CPA's Tax & Business Insight by filling out the form below.

Home    Newsletter Archive    Introducing Michael Gray, CPA    Articles    Tax FAQ   Need Help?    Other Links

Michael Gray, CPA
2482 Wooding Ct.
San Jose, CA 95128
(408) 918-3162
FAX: (408) 938-0610
Hours: 8am - 5pm PDT Monday - Friday

Find us on Facebook
Follow me on Twitter
Connect on LinkedIn
Our Blog

Subscribe to Michael Gray, CPA's
Tax & Business Insight

We respect your email privacy