Hi,
I have questions in regards to guaranteed payments for a multimember LLC. If the cash is simply not there to payout the guaranteed payments, do I debit "member 1" guaranteed payment. (expense account) and credit "member 1" contribution account (equity). Basically stating, the company paid "member 1", but "member 1" immediately put money back into the company. I understand, that in this case the member would still be responsible to pay SE taxes quarterly.
Is there a better way to do this?
Thanks a bunch
Sebastian
I have questions in regards to guaranteed payments for a multimember LLC. If the cash is simply not there to payout the guaranteed payments, do I debit "member 1" guaranteed payment. (expense account) and credit "member 1" contribution account (equity). Basically stating, the company paid "member 1", but "member 1" immediately put money back into the company. I understand, that in this case the member would still be responsible to pay SE taxes quarterly.
Is there a better way to do this?
Thanks a bunch
Sebastian
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