Are partners considered employees of a partnership or are they self-employed?

Partners are considered to be self-employed. If you are a member of a partnership that carries on a trade or business, your distributive share of its income or loss from that trade or business is net earnings from self-employment. Limited partners are subject to self-employment tax only on guaranteed payments, such as salary and professional fees for services rendered.
 


-25 votes


Get the Info That Matters Most to You With SBA Direct

Find information on:

(Select your topics)

Get Local Assistance Right in Your Area

Counseling, mentoring, and training from an SBA District Office, SCORE Chapter, Small Biz Development Center or Women’s Biz Center in your area.

FIND RESOURCES

join the community

Success Story photo
At the southern end of Bellevue's blighted Fort Crook corridor, one of the newest and hungriest technology contractors in the area has found a...
Ginny Williams archSCAN, LLC, Annapolis, MD (410) 974-8183 http://www.archscan.com/ "When life gives you lemons, make lemonade"...
Elizabeth Kent’s interest in interior design and crafts began with sewing projects she was assigned as a child by her mother. She developed...