Newly formed LLC, owners the only employees do we need to pay FUTA?

I am opening a country store with a friend. We have filed as an LLC. We are planning on working the shop ourselves when we start out, may change at some point, but not in the near future. Are we required to pay FUTA?

How did you elect to be taxed? If you elected to be taxed as a corp, you MUST pay yourselves a reasonable salary, withhold taxes from the pay, and pay all payroll taxes including FUTA.

If you didn't make an election then you're treated as a partnership. You'll file a Partnership return on Form 1065 and generate Schedules K-1 for each partner. The partners will use the K-1s to prepare their individual income tax returns. That income is treated as self-employment income so you'll also attach Schedule SE to calculate and pay the self-employment taxes on the income. However self-employed folks are not eligible for unemployment compensation so they do not pay FUTA.

Partners do not pay themselves as employees. You typically each take an owner's draw (or partners' draw if you want to be technically correct on the terminology) but pay taxes on your share of the profits of the partnership, regardless of how much you take for owners' draws.

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