If I have an LLC and I take on a couple members at 1% and potentially switch out those members every year or every couple of years, are those people still considered employees?

My understanding is that LLCs can pay its members through profit distributions and guaranteed payments which require the member to pay self-employment taxes but otherwise are not considered employees of the LLC. I am unsure if there is a minimum percentage in an LLC that causes someone to become an employee or need workman's comp etc.

0 answers  |  asked Feb 15, 2020 3:05 PM [EST]  |  applies to California

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