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Business & farm
An LLC is an entity created by state statute. Depending on elections made by the LLC and the number of members, the IRS will treat an LLC either as a corporation, partnership, or as part of the owner's tax return (a "disregarded entity")
As such, there is no formal reasonable compensation rule. Your profit is your income reported on the 1040.
‎June 4, 2019
12:09 PM