Florida LLC
Yes, an LLC can have employees, allowing it to hire and manage a workforce for its business operations.
Starts at $0 + state fees and only takes 5-10 minutes
Last Updated: April 7, 2026
Even a small limited liability company can have employees. LLCs need to follow the rules regarding staff, such as paying at least the minimum wage and offering employee benefits to full-time employees. It’s important to note that most LLC members can’t be employees of the LLC if they’re not filing taxes as a corporation. Note: owners of an LLC are referred to as “members.”
It’s completely possible for a single-member LLC to have employees. In fact, many LLCs run their business with employees. Even if an entrepreneur doesn’t want to hire full-time employees, they still have lots of other options for help, such as hiring independent contractors.
If an LLC member chooses to use independent contractors, they won’t have to worry about withholding taxes or providing them with benefits. However, they would need to issue a 1099 form to each contractor. Independent contractors can be a great way to get specialized support without actually hiring an employee (learn more with the independent contractors definition guide).
Recommended article: Can a LLC member also be an employee?
Before someone can hire anyone for their LLC, they’ll need to apply for an employer identification number (EIN). This number is from the IRS and acknowledges that a business can legally hire employees. Getting an employer identification number is free, and the application process should only take a few minutes.
Hiring employees for an LLC is similar to most other businesses. There are a few things an entrepreneur will need to learn about a possible employee, especially for tax purposes. When hiring somebody, it’s wise to make sure that they’re legally authorized to work in the U.S. and that they have (or can get) a Social Security number. A business owner will also need to have clear guidelines for employee wages, and it’s always a good idea to have an employee handbook.
Once an employee has officially been hired, the LLC has 20 days to report that information to the state. Typically, the LLC will also need to purchase workers’ compensation insurance. The business will also need to have all required labor law posters with an explanation of rights posted throughout the workplace.
Last but not least, a business owner needs to research all federal and state labor laws applicable to their industry and location.
It’s essential for business owners to pay employee wages in a timely and reliable manner. Payroll can be stressful, but there are great options entrepreneurs can consider to take this aspect of running a business off their plate (more on that later).
When it comes to paying employees, it’s important to think about payroll taxes. Typically, business owners will need to make sure that they’re setting aside the correct amount each time an employee is paid. When calculating payroll taxes, it’s essential to keep records and maintain clear paperwork.
Filing taxes is something that many people wonder about when starting an LLC.
By default, an LLC has the benefit of pass-through taxation, which means the business itself doesn’t need to pay federal income taxes. The LLC’s profits will only be federally taxed on the personal tax returns of the owners. The business itself would only pay federal income taxes if it elects to be taxed as a C corporation.
The employees of an LLC will pay taxes and have withholding taxes just like employees of other business entities. However, the LLC owners themselves aren’t allowed to be paid as employees. They’re compensated by receiving their share of the LLC’s profits. Learn more about how to pay LLC owners.
There’s an exception to the rule about LLC owners being able to be employees of the company. If the LLC elects to be taxed as an S corporation or C corporation, the LLC owners can be “owner-employees” of the company and receive a salary in addition to their share of the profits. Some LLCs file as a corporation because this allows them to pay employment taxes (the taxes earmarked for Social Security and Medicare) only on their salary and not their share of the profits. For more information, check out the What is an S Corp? page.
Some business owners don’t realize that LLCs are required to keep their employee tax records for a minimum of four years. It’s important to keep these records in case questions ever arise.
Recommended articles:
It’s no secret that accounting can be stressful. ZenBusiness Money Pro can be a huge help. When someone chooses ZenBusiness Money Pro, they can keep all their business expenses in one place. This tool is essential to staying organized.
ZenBusiness’s business formation services are the perfect option for individuals who want to ensure their LLC is formed properly and has the tools it needs to run and grow. Whether someone is new to starting businesses or they’re already an expert, it’s always great to have extra support.
It’s possible for a member of an LLC to also be an employee, but only if the LLC first applies to be taxed as a corporation.
If an LLC member intends to receive a salary from their business, they’ll need to file to be taxed as a corporation. LLC members who elect to be taxed as a pass-through entity can’t pay themselves like employees.
If an LLC successfully applies with the IRS to be taxed as a corporation, then a member acting as an employee of the LLC can receive a W-2. They’ll also need to have the necessary taxes withheld from their paychecks.
There’s no restriction on the number of employees in an LLC. But if a person is the owner of the LLC, they must first apply to be taxed as a corporation by the IRS before they can be employed by the company.
If a business owner is an LLC member, then they typically won’t receive a salary (at least not for their LLC profits). Instead, that member will likely receive a percentage of the business’s profits that aligns with their ownership stake. If an LLC’s members want to receive a salary instead, the LLC will need to apply with the IRS to be taxed as a corporation.
Start an LLC in Your State
When it comes to compliance, costs, and other factors, these are popular states for forming an LLC.
LLC Resources
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. For specific questions about any of these topics, seek the counsel of a licensed professional.
Ready to Start Your LLC?
Scan to download
the ZenBusiness app
