Multi-member LLC and W-2

[lovethepirk]

1) If a group of 10 friends create and LLC where 5 are members and 5 are just employees do we issue everyone a w-2 or just the 5 non-members?

2) Same question as above only this time we are an S-corp?

Thanks....

 

[Samir]

Only employees get w2s. And there's caveats of being an employee of your own llc. I believe the IRS does not allow it. You can all probably be employees in an s-corp, but again check IRS regulations.