The Employee Retention Tax Credit or ERTC, is a credit program designed by the government to incentivize businesses to retain their employees during periods of economic difficulty… such as the pandemic we’re currently facing. It’s a complex program with many facets… some might even say it can be somewhat dull and tedious to navigate through… but in essence, it’s a potentially valuable lifeline for businesses during these challenging times.
How does one qualify for the ERTC?
One of the key questions business owners ask about this program is ‘how does one qualify for the ERTC?’ Qualification criteria can vary depending on a number of factors… but essentially, businesses need to demonstrate that they have been adversely affected by government orders resulting in full or partial suspension of their operations… or they’ve experienced significant decline in gross receipts compared to 2019.
Also read: Employee Retention Credit Deadline 2023
Is a Single-Member LLC eligible for Employee Retention Credits?
Now let’s address our primary question: Is a single-member LLC eligible for Employee Retention Credits? The simple answer is yes. The structure of your business, whether an LLC, LLP, sole proprietorship or corporation, doesn’t influence eligibility. It doesn’t matter if you are considered a disregarded entity with tax liabilities flowing through to your personal tax returns or if your business pays taxes directly…eligibility extends across all these configurations.
Are wages for the owner of an LLC eligible for ERTC’s?
But what about wages paid to an owner of an LLC? Are those eligible too? Unfortunately not. Even if you are paid as a W-2 employee and your company contributes to payroll taxes, any wages paid out to majority owners or any relatives working in the business have been explicitly ruled ineligible by the IRS.
Beware of Deceptive Practices
As you continue your journey to understanding and potentially leveraging the ERTC, beware of firms using deceptive practices to entice you. Remember, ultimately, you are responsible for these tax credit claims…and no so-called ERTC “expert” can change that fact.
Also read: Are These ERTC Cold Calls Just a Scam?
Why Choose JWC ERTC Advisory CPA?
Amidst the confusion and complexity of navigating tax credits, it’s imperative to have a reliable partner by your side. This is where the expertise and experience of JWC ERTC Advisory CPA comes in. Not only do we offer an independent eligibility review for taxpayers who have previously filed for ERTC but are skeptical about their eligibility, but we also stand as a bulwark against fear and uncertainty while maximizing potential gains. We strive to provide a service that is distinct from other ERC firms, offering our clients peace of mind during these uncertain times.
In conclusion… whether you’re an experienced CPA looking to serve your clients better or a business owner trying to understand if your single-member LLC is eligible for the Employee Retention Credit… remember that expert help is available. While the journey might seem daunting, with the right guidance and advice, navigating through it becomes significantly less intimidating.