Can an LLC Have Employees?
Your LLC can always have employees regardless of the number of members or whether your LLC is member-managed or manager-managed. Employees need not be members themselves, though members may be employees if they would like. Before you hire any employees, though, ensure that the two necessary requirements are fulfilled.
An employee is legally defined as any individual hired for a wage, salary, fee or payment to perform work for an employer. Employees are distinct from independent contractors. This distinction is important when determining whether certain laws apply to the business — some laws only take effect when a company has more than a set number of employees — whether an individual is eligible for worker’s compensation, and whether the limited liability company will be liable for damages caused by the individual.
Your company’s limited liability protections will not be extended to any employees, but the LLC will still receive limited liability for damages an employee causes. This only means that the members will not be personally liable for an employee’s damages; the LLC itself will still be liable.
Requirements for an LLC to Have Employees
In order to hire employees, a limited liability company must have an Employer Identification Number or EIN. The process of applying for an EIN is straightforward, but you could hire an attorney or accountant for assistance if necessary.
Your state may also require you to register as an employer on top of the other registrations you filed for becoming an LLC. This is typically for taxation purposes, but may also extend to certain yearly filing requirements or statutory compliance reports. Consult your state’s income tax division or Secretary of State to find out if employer registration is necessary.
Although limited liability company members are considered self-employed for IRS purposes, LLC employees are not. Your must file returns and pay payroll tax just like any other type of business entity that hired employees.
Incoming search terms:can an llc have employees (53), llc employees (40), LLC and employees (14), can an llc hire employees (4), howany people can be on a llc ohio (3), can florida llc hire employees (2), Can LLC Members Be Employees (2), LLC employee (2), can an LLC member manager be an employee of the llc (2), llc with employees (2), employees of single member llc (2), single member llc with employees (2), llc and paying employees (1), what taxes must be paid to employee of an LLC (1), llc business wnats to hire employees (1), llc companies employees (1), what do you habe to does an llc have to have employees (1), LLC employee laws (1), llc employee taxes (1), paying employees in an llc (1), LIMITED LIABILITY COMPANY PAYING EMPLOYEES (1), im a small business owner does it pay to hire any employees (1), If you are an LLC how many employees do you have to have to have to have workers compensation insurance (1), yhs-lavasoft (1), how to pay employees of a llc (1), how to pay a person with my llc (1), how to hire with a llc? (1), how to hire employees with a llc (1), how to be an employee for your llc (1), washington state llc employees (1), llc hiring an employee (1), llc member as employee (1), Paying employees from an LLC (1), own a llc business with no employees obama care (1), one employee of businees vs llc (1), non member hired to work for llc perminently (1), member employee of partnership or llc (1), paying employees llc (1), PAYROLL llc members (1), single member llc employees (1), maryland can an employee be a member of llc (1), LLCs and hiring employees (1), LLCs and employees (1), llc your ny business paying employees (1), single member llc with independent contractors (1), using an llc for domestic employee (1), LLC with employee (1), llc owner vs employee (1), llc options for paying employees (1), how many employees do you have to have to own a corporation (1), how many employees can an llc have (1), add employee to llc (1), can a person have be an employee of two companies (1), can a single member llc have employees (1), can a small business be a llc if they have employees (1), can an llc have a payroll? (1), can I pay an employee from my llc? (1), can limited liability company pay member wages (1), can llc have employess with no stock in compamy (1), CAN LLC HAVE NO EMPLOYEES (1)