For that reason, they are topic to self-employment taxes. Which means that they must spend Social Security taxes and Medicare taxes every year based on their own allocation on the LLC's income. This really is taxation that's straight based on the LLC's Internet earnings. Information furnished on Forbes Advisor is https://portal.uaptc.edu/ICS/icsfs/unraveling-the-knot-a-step-by-step-guide-to-dissol.html?target=43e356d7-b50f-4ff6-9e8b-de5a8e9d9fa3