How do I claim payroll towards one member of a 2 member partner LLC?

[sporcarsiapparel]

I can't find a place to add my payroll towards myself as one of the 2 members in the LLC

[IsabellaG · Accepted solution]

As a partner, you don't pay yourself with W-2 wages. Partners in a partnership (including certain members of a limited liability company (LLC)) are considered to be self-employed, not employees, when performing services for the partnership.See this link to the IRS.

Payments to partners for services rendered to the partnership are deducted as Guaranteed Payments. See the screenshot below for where to enter guaranteed payments in TurboTax Business for a Partnership.

[sporcarsiapparel]

Once I add my payments under Guaranteed Payments. Would I make a 1099 MISC for myself vs W2?

[IsabellaG]

No, you don't need to issue either. You would report your share of the Guaranteed Payments from your K-1.

[sporcarsiapparel]

Because with a W2 I'd have to pay towards SS and Unemployment. But with a 1099 MISC I don't have to pay towards SS and Unemployment, Correct?

[IsabellaG]

That's true, but again, you don't issue yourself either a 1099 or a W-2. Line 4 of the 1065 K-1 takes care of that.

[sporcarsiapparel]

Thank you for clearing that up for me. 🙂

[IsabellaG]

My pleasure!