Yes, you are correct. According to IRS Pub 541 Partnerships, Contribution of Services:
"The fair market value of services rendered in exchange for a capital interest in a
partnership is taxable to the partner as a guaranteed payment..."
"The receipt of a profits interest for providing services to a partnership in a partner capacity is not taxable to the partner..." [some exceptions apply]
If you anticipate receiving a capital interest in the partnership, the potential tax consequences may influence your decision. The value of the contributed services would be reported on Schedule K-1 as Guaranteed Payments, which are subject to both ordinary income and self-employment taxes (IRS FAQ Entities 1).
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