MS 100.2 LLC Tax Status

Click on the case numbers below to access decisions, where a person’s eligibility for benefits depends upon whether an employer LLC elected to be treated as a corporation.

0019 1799 18

0019 1799 18 (June 29, 2017) – Claimant, a co-owner of the employer LLC, was monetarily eligible for benefits because tax returns presented sufficient evidence that the employer elected to be taxed as an S-corporation for federal tax purposes during the base period.  For unemployment purposes, the claimant is treated as an employee of the corporation.

0012 1800 09

0012 1800 09 (Mar. 4, 2016) – Absent evidence that his former LLC employer filed an IRS Form 8832 electing to be treated as a corporation, the claimant is deemed to have been employed by a partnership.  Because the partners were the claimant’s sons, his services were exempt under G.L. c. 151A, § 6(d).  The claimant did not have sufficient qualifying wages in the base period to be monetarily eligible under G.L. c. 151A, § 24(a).