Am I considered Self-Employed?
I have been working for the same Construction Company for 14 years. I do not own any portion of this company.
In 2009, I began a side venture and started two Real Estate LLC's. I own 25% of both of these companies.
I am now trying to personally purchase a new home. The Lender and loan Underwriting tell me that because I have 25%+ ownership in the LLC's, I am considered Self-Employed.
Is this correct?
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Answers & Comments
You are a commonlaw employee for your main job, if they take withholding from you. For the income from your llcs, yes you are self employed. You should have been filing a schedule C for the llc since 2009 and shouldve been paying self employment tax since then. I suggest u ammend your previous returns and pay the 15.3% tax or u will be audited and charged pebtalties and interest eventually
how are you reporting the LLC's? as a sole proprietor(one option) absolutely self employed
For their purposes it is correct since they think so. For tax purposes that is another issue and does not really matter for loan purposes.