Re: internet business - legal and tax questions

In article <[EMAIL PROTECTED]>,
Dave Miller  <[EMAIL PROTECTED]> wrote:
(snip)
>I may have misunderstood you. If you want to own a portion of the 
>business *and* be an employee, the only option is to incorporate. As to 
(snip)

This is a common myth, which even our latest CPA labored under. It's
true in this sort of situation, probably, but in cases when the LLC is
structured so that it can largely tell the member what to do for their
money - working hours, tasks, etc. similar to as if they were an
employee, and the member's "managerial" vote about that sort of thing
is just one of several - then the IRS is fine with the member being
paid as an employee. It's really a matter of if the person, despite
being a member and/or a manager of the LLC, is beholden more to the
LLC as a decision-making entity with respect to what they do in their
work and how, in a regular way, instead of just doing what they
personally think should be done and still getting paid for it.

-- Mark