Self-Employment Tax for LLC Members (2 hours - afternoon) - Webcast

Overview

If you prepare Form 1065s or have clients who receive K-1s from partnerships you will want to attend this course! The IRS is battling with some of the largest partnerships in the Country over self-employment taxes and this will have major implications for all partnerships going forward. We’ll provide a broad overview of self-employment tax application for partners including LLC members and Limited Partners including up-to-the-minute changes. We will provide planning ideas on structuring to minimize self-employment tax for partners. We’ll also cover the benefits of paying SE tax (an often-overlooked element of planning).

Highlights

• Which LLC members are subject to self-employment tax.
• How does self-employment tax apply to spouses of LLC members.
• Guidance the IRS has issued to its auditors on taxpayers following the proposed regulations issued by the IRS.
• How to minimize self-employment tax for LLC members.
• Which members benefit from paying self-employment tax.
• New cases on the application of self-employment tax to limited partners, including Denham Capital LP and the "functional analysis test" and the 5th Circuit's January 2026 decision in Sirius (which overturned the Tax Court).

Designed For

Participants should have a minimum of 2 years’ experience in the tax area including preparation of Forms 1065 for LLCs and Limited Partnerships.

Objectives

Attendees will be able to:

• Identify different guidance in this area, including case law, proposed regulations and administrative guidance.
• Determine whether it's possible to reduce SE taxes where spouses jointly own an interest in an LLC.
• Discuss self-employment tax distinctions between general partnerships, limited partnerships, limited liability companies and limited liability partnerships.
• Identify the benefits of increased social security benefits if self-employment tax is paid.