I started a 2-person LLC with a partner last year. The start up was rather part-time later in the year and, as such, we didn't earn that much. We paid ourselves on an hourly basis. I earned about $5,000 and my partner about $4,000. We calculated for the 1065 and K-1's a partnership loss of about ($1,500) each.
I'm clear where 1065/K-1 info goes. However, what I'm not clear on is the actual $5,000 that our LLC paid me. It seems to me odd that I would just record the partnership loss on the taxes and not the actual $5,000 income that I earned. Am I correct that that should be recorded as well? If so, where does it go?
Thanks in advance! 🙂
