For this reason, they are issue to self-employment taxes. Because of this they must pay back Social Protection taxes and Medicare taxes on a yearly basis based on their allocation of the LLC's revenue. That is taxation that's instantly based upon the LLC's net earnings. Information furnished on Forbes Advisor https://www.aun.edu.eg/fci/sites/default/files/research_project/the-dissolution-roadmap-essential-steps-for-closing-an-llc.pdf