Question:   Are partners considered employees of a partnership or are they self-employed?

Answer:    

• Partners in a partnership or members of a limited liability company are considered to be self-employed.
• The partnership (including a LLC) must furnish Schedules K-1 to the partners by the partnership information return due date or extended due date.
• If you are a general partner of a partnership (or treated as a general partner in a LLC) that carries on a trade or business, your distributive share of the income or loss from that trade or business plus any trade or business items that are separately stated is net earnings from self-employment.
• If you are a limited partner of a partnership (or treated as a limited partner in a LLC) that carries on a trade or business, guaranteed payments you receive for services you rendered to or on behalf of the partnership are net earnings from self-employment. .