What LLC businesses or services are exempt from self-employment tax?

Asked 11 months ago - Miami, FL

I am the sole founder looking to start an import/export LLC; I will be linking food suppliers from Europe with retailers in the US. For example, I will find Olive Oil suppliers in Europe who want to sell their products to US supermarkets. The suppliers will ship the foodstuff to retailers; I am simply the middleman -- will I still be subject to Self Employment tax if i were to go the LLC route? How would I have to structure my business to avoid self-employment tax?

Attorney answers (4)

  1. Mark Robert Mohler

    Contributor Level 11

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    Answered . It is possible to have less exposure to self employment taxes as an owner of an S corp, rather than an LLC. However, this is but one of numerous issues one should consider when choosing an entity.

  2. Hilary Metz

    Contributor Level 8

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    Answered . There are pros and cons to using an LLC in your situation. You should consult with a business attorney directly to discuss more detail about your company, the goals for your company, and how different business structures may effect those goals.

    You should meet with and schedule a consultation with an attorney who can review your documents and discuss your... more
  3. Mishka L Marshall

    Pro

    Contributor Level 17

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    Answered . You would be best served by consulting with a business and/or tax attorney and a CPA. Good luck.

  4. Christopher Daniel Leroi

    Contributor Level 20

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    Answered . Consult with a local CPA

    The information provided in this answer does not create an attorney-client relationship and is not considered to... more

Related Topics

Small business LLCs

An LLC (limited liability company) is a business entity that has elements of both a corporation and a partnership (or sole proprietorship).

Small business s-corporation

An S corporation does not pay federal income taxes, instead passing its income, losses, deductions, and credits through to its shareholders.

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