If I Am a Member in an LLC That Owes Unpaid Taxes, Am I Personally Responsible?

The taxing authority for the Limited Liability Company (LLC) has the ability to determine who is responsible for making the tax payments or authorizing tax payments for the LLC — these individuals are referred to as the “responsible persons”.

The “responsible persons” indeed may be personally obligated to pay the LLC’s tax obligations. But not always. 

While the members of an LLC may be deemed the “responsible persons”, they do not necessarily have to be: if other persons within the organization are responsible for making tax payments, and certain owners/members do not have direct input in the decision to pay or not pay taxes, some owners/members may not be deemed “responsible persons”.

However, if the owners/members are the ones that pay or make the decisions on the payment of LLC obligations, those owners and/or members may be determined to be the “responsible persons” and would be personally responsible for such payments and, as a result, subject to collection activity on a personal level.

Get complete details on Standard Legal’s Limited Liability Company legal forms software here.