Keep this in mind if you’re in a partnership that owns a single-member LLC: You could owe self-employment tax on the LLC’s income. Individuals who own 100% of an LLC that elects to be a disregarded entity for tax purposes pay SECA tax on self-employment earnings from the LLC’s activities. Temporary regs issued in 2016 extended this rule to an LLC wholly owned by a partnership, and IRS recently issued final rules confirming this. The partners will owe SECA tax in the same manner as partners in a partnership that doesn’t own a disregarded entity. Additionally, the LLC won’t be the employer of any partner in the partnership.