The tax regime of the Self Employment Contributions Act (SECA) applies to net income derived from self-employment—including by partners in partnerships and limited liability partnerships (LLPs), members in limited liability companies (LLCs), and sole proprietors. An entity may not realize that LLC or LLP members are subject to SECA.
In the professions of health, law, consulting, accounting, and other specialized fields, individuals may be subject to SECA if they are members of a “service partnership” that is an LLC or LLP—even if they only occasionally provide services to the entity.
Read a May 2016 report [PDF 167 KB] prepared by KPMG LLP: What’s News in Tax: The Application of SECA to Service LLCs and LLPs
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