Question
Uga Dog, Smokey Vol, and Aubie Tiger have been lifelong friends. In January, 20XX, Uga, Smokey, and Aubie formed South LLC for their growing sports
Uga Dog, Smokey Vol, and Aubie Tiger have been lifelong friends. In January, 20XX, Uga, Smokey, and Aubie formed South LLC for their growing sports memorabilia business. Each member contributed $35,000 cash to start the business as one third members. South LLC 123 Education Lane College, TN 37996 FEIN: 36-6342571
Payment to be rendered to Aubie Tiger for accounting services performed through December 31, 20XX, in the amount of $12,000. After reviewing the payment document to Aubie Tiger, which statement is most correct:
I have concluded that this payment is not deductible by South LLC and not subject to self-employment tax by Augie.
I have concluded that this payment is deductible by South LLC and not subject to self-employment tax by Aubie.
I have concluded that this payment is not deductible by South LLC and is subject to self-employment tax by Aubie.
I have concluded that this payment is deductible by South LLC and is subject to self-employment tax by Aubie.
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