Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 6 years ago on . Most recent reply presented by

User Stats

10
Posts
0
Votes
Billie Joe
0
Votes |
10
Posts

Can you have an LLC Partnership where 1 member is a contractor?

Billie Joe
Posted

In an LLC taxed as partnership, can 1 of the partners be an independent 1099 contractor to provide services for the business?

For example:

Partner #1 Limited Partner (K-1)

Partner #2 Limited Partner (K-1) AND 1099 Contractor - Basically receiving payments as a contractor for running the majority of the business, and as a limited partner (which would account for any money beyond the 1099 payments) 

Or does this have to be structured differently for tax purposes? 

Thank you in advance to anyone who is so kind as to share their time and wealth of knowledge with me! 

Most Popular Reply

User Stats

103
Posts
65
Votes
Ronald Isgate
  • Attorney
  • Doylestown, PA
65
Votes |
103
Posts
Ronald Isgate
  • Attorney
  • Doylestown, PA
Replied

I agree with Carl Fischer above - you can absolutely do that.  You can change ownership interests to compensate one party vs the other (depending on the value of $ vs. services to be provided), or you can simply pay the contractor for services rendered.  

Chatting with your attorney and CPA is absolutely recommended so you get the best path forward for profit and protection.

Loading replies...