Under Proposed Rules Issued by the IRS, in Which of the Following

question 9

Multiple Choice

Under proposed rules issued by the IRS, in which of the following situations should an LLC member be treated as a general partner for self-employment tax purposes?

• A) The member is not personally liable for any of the LLC debt.
• B) The member has authority to contract on behalf of the LLC.
• C) The member spends 450 hours participating in the management of the LLC's trade or business during the taxable year.
• D) The member is listed on the LLC's letterhead.

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Definitions:

Business Users

Individuals within an organization who utilize information technology and systems in the course of their job to enhance productivity or decision-making.

Manufacturing Module

A component of enterprise resource planning (ERP) systems designed to manage and automate various aspects of the manufacturing process.

Payroll

The total amount of wages paid by a company to its employees and contractors.

JAD

Joint Application Development, a methodology that involves the client or end user in the design and development of an application through collaborative workshops.