Can an active owner use limited partner status to avoid self-employment tax?

Not by slogan alone. An active owner cannot simply point to a limited-partner label and assume every item escapes self-employment tax. The exam wants you to slow down and classify the facts.

A better routine is:

• identify the legal role described
• isolate any guaranteed payment or fixed service amount
• analyze the residual profit allocation separately

If the facts are mixed, a one-line answer is usually wrong. The correct answer is often that part of the owner's receipts may be treated one way and part another.