The owners of an LLC are not eligible for the ERC. This means that self-employed workers (Annex C and LLC) do not receive qualified wages. The owners of an LLC are not considered employees and do not receive salaries because, as sole proprietors, they simply extract funds from the company's expected profits. The salaries of the owners of a corporation may not qualify for the ERC, but certain exceptions apply.
Be sure to thoroughly research your situation to ensure that you can apply for the employee retention credit on your salary or the salary of your employees. The ERC can mean tens of thousands of dollars for your company, so you don't want to miss out on this tax break if you qualify. If the majority owner of a business has any living family members, the salaries paid to the owner will not be eligible for the ERC credit; however, if the majority owner has no family, the salaries are eligible for the ERC credit. The ERC is available to any employee of a sole proprietorship, LLC, S-Corp, C-Corp, or 1099 who meets the eligibility requirements.
