Dock David Treece
Thanks for the question. I’m not a FUTA expert, but I imagine you are correct that the owner of an LLC is probably exempt from FUTA. This is probably at least partly due to the fact that the IRS does not recognize the right of LLC owners to pay themselves a salary. Any money that owners take from the company is considered a draw. They’ll still owe income taxes and self-employment tax, but given that the IRS doesn’t classify this as a salary, I doubt he would be eligible for unemployment if he became “separated” from his employment with his own company.
I hope this helps. You may want to check with a certified accountant if you have more specific questions.