My wife and I own an LLC (Florida), no employees. We've been incorrectly filing on the Schedule C the last couple of years. This year we've realized our mistake and are switching to the K-1, which is obviously more complex.
In using TurboTax Business, when inputting LLC members (again, just my wife and I), one of the blocks is to enter "Cash Distributions Member Received from LLC (Do not include guaranteed payments or salaries paid to the member)"
It's not clear at all to me what we put here. We are both 50% owners, the LLC is a pass through entity, our profit is our "pay" for tax purposes (in the past we've divided income and expenses in half and filed a schedule c for each of us, married filing jointly).
Is this distribution simply our business profit, divided by 2, for each of us? Or is this something else entirely?
