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You have to pay social security on every dime up to $120,000 you personally make. Doesn't matter if you make it through an Sole Proprietorship, LLC, C-Corp or S-Corp.

Although in Amy's case, she may not have to pay any living in Vienna. But I'm sure the US Gov't get it's share.



That doesn't sound quite right. Dividends, capital gains, and interest are forms of income not requiring FICA right?

It seems like FICA should only be for selling your labor.

I think the 120k figure is wrong too but I'm on an olden first gen iPhone so I can look it up.


If you try to declare that all the money you pulled from your LLC was dividends and not a salary, the IRS will bust you. Once you declare a 'fair' amount as salary (and pay FICA), the rest you can pull without paying FICA.




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