No. The $5,000 is not an expense. It is treated as a distribution to the member's.
You need to make sure each member maintains a basis schedule as this determines if losses are deductible, if distributions are taxable and then eventually, whether there is a gain or loss on the investment.
*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.
