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?
@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
@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