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37489246
Returning Member

How to handle LLC reimbursements to members?

I have a small LLC and I reimbursed my members (including myself) for services performed for the company. Now I am confused how to report that, was I supposed to give everyone 1099's for that? Or is it passed through some other way?

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tagteam
Level 15

How to handle LLC reimbursements to members?


@37489246 wrote:

I have a small LLC and I reimbursed my members (including myself) for services performed for the company. Now I am confused how to report that, was I supposed to give everyone 1099's for that? Or is it passed through some other way?


Reimbursements to members/partners are typically reimbursements for expenses, not for services performed for the LLC/partnership; members/partners are considered to be self-employed.

 

Guaranteed payments (see link below) and other items of income allocated to members/partners are reported on Schedule K-1, not any type of 1099.

 

https://www.irs.gov/publications/p541#en_US_201902_publink1000104260

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1 Reply
tagteam
Level 15

How to handle LLC reimbursements to members?


@37489246 wrote:

I have a small LLC and I reimbursed my members (including myself) for services performed for the company. Now I am confused how to report that, was I supposed to give everyone 1099's for that? Or is it passed through some other way?


Reimbursements to members/partners are typically reimbursements for expenses, not for services performed for the LLC/partnership; members/partners are considered to be self-employed.

 

Guaranteed payments (see link below) and other items of income allocated to members/partners are reported on Schedule K-1, not any type of 1099.

 

https://www.irs.gov/publications/p541#en_US_201902_publink1000104260

View solution in original post

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