Limited Liability Companies

The treatment of a Limited Liability Company (LLC) under Florida reemployment law depends on how the LLC files its federal income tax return.

If the LLC files its federal income tax return as a:

  1. C corporation or an S corporation, the LLC is treated as a corporation and members of the LLC are employees if they perform services for the LLC. A member of an LLC who performs services for an LLC classified as a corporation for federal income tax purposes is deemed by law to be an employee of the LLC and should be reported on the LLC’s Employer's Quarterly Report (Form RT-6 PDF Icon).

  2. Partnership, the LLC is treated as a partnership and members are regarded as partners. Members would not be employees and their wages would not be taxable wages in Florida. If the LLC filing its federal income tax return as a partnership has other employees, the LLC itself must register and pay tax on the wages paid to the other employees, unless the wages are exempt for another reason.

    Wages are exempt if paid to an individual employed by his or her son, daughter, or spouse, including step relationships. In addition, wages paid to a child, or stepchild, under the age of 21 employed by his or her father, mother, stepfather, or stepmother are also exempt. For a partnership, the family member employed must have the same relationship to all partners to be exempt. For example, a son would have to be the son of all, not just some, of the partners to be exempt. Similarly, a father would have to be a father to all of the partners to be exempt.

  3. Sole proprietor, the LLC is treated as a sole proprietor. The single member/owner is not an employee and his or her wages would not be taxable wages in Florida. If the LLC filing its federal income tax return as a sole proprietor has other employees, the LLC itself must register and pay tax on the wages paid to the other employees, unless the wages are exempt for another reason.

    Wages are exempt if paid to an individual employed by his or her son, daughter, or spouse, including step relationships. In addition, wages paid to a child, or stepchild, under the age of 21 employed by his or her father, mother, stepfather, or stepmother are also exempt. As provided in s. 443.036(20)(d), F.S., a single member LLC is the employer required to register and report employee wages and pay the tax even if it is a disregarded entity for federal income tax purposes.

Reference: Section 443.036(20), Florida Statutes