Based on the limited facts:
- You need to meet with a tax professional
- If two members did not contribute capital they have a profits interest only or else there could be an income event.
- The “draw” could be a guaranteed payment or a distribution depending on the intent
- Regardless, either would be taxable (assuming you are one of the non capital contributing members)
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
