If a partner in an LLC has not set aside enough money to pay for their quarterly tax estimate, is it okay to transfer money out of our business bank account to their personal bank account to make up the difference? Or do you have to give that money in the form of a guaranteed payment since it will be used for paying taxes? This is a family owned LLC, so this would be easy to do either way. We just don't want to make a transfer that is solely for the purpose of paying taxes if you can't do it that way. It seems like you should be able to transfer your own money the way you want, but again, since you would be doing it only for the purpose of helping that partner pay their taxes, then it might have to be in the form of a guaranteed payment, which would then be taxed as well. The reason I am asking is because we are trying to figure out how much each partner will need weekly to cover not only their living expenses, but what they will owe in quarterly tax payments, and it is a little hard to know for sure what that amount should be when you have never done it before. So if it becomes clear as we move on that more has been spent on living expenses, and not enough was set aside for taxes, then I wanted to know what to do. We want to get it right. We have a good idea of what will be owed, but in case we are off, I want to be prepared before April 15. We have been giving out the guaranteed payments since the first week of this year.
