Is oregon LLC member compensation the same as ordinary business income?

[AmandaR1 · Accepted solution]

No, you only have member compensation if you worked in the business. Ordinary business income/loss is the activity that passes through to members, regardless of if you worked in the business or not. 

Where you will find this, depends on how your LLC is taxed. If you received a schedule K-1 (1065), then guaranteed payments are in box 4. If you received a schedule K-1 (1120-S) then member compensation is reported on a W-2. 

Member compensation would only be allocable to Oregon if you worked in Oregon or if you lived in the state. Also, sometimes, there will be a schedule attached to your K-1 that tells you what amounts are allocable to which states.