A member of an LLC that is treated as a partnership for tax purposes cannot be an employee (can't receive a W-2).
Any remuneration paid to members is treated as a guaranteed payment. Reported as an expense on page one of the 1065 and also reported separately on the member's K-1. This is considered self-employment income for the member.
This is not an equity draw (distribution), but an expense of the company and income to the member as a guaranteed payment.
*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.
