Yes, General Partners who actively participate in an LLC have self-employment earnings on most income (loss).
According to IRS Instructions for Form 1065 Line 14a Self-Employment:
General partners' net earnings (loss) from self-employment do not include the following.
- Dividends on any shares of stock and interest on any bonds, debentures, notes, etc., unless the dividends or interest are received in the course of a trade or business, such as a dealer in stocks or securities or interest on notes or accounts receivable.
- Rentals from real estate, except rentals of real estate held for sale to customers in the course of a trade or business as a real estate dealer or payments for rooms or space when significant services are provided.
- Royalty income, except royalty income received in the course of a trade or business.
Limited partners treat as self-employment earnings only guaranteed payments for services they actually rendered to, or on behalf of, the partnership to the extent that those payments are payment for those services.
Distributions of capital are not taxable income to any partner unless the distribution exceeds the partner's adjusted basis.
TurboTax will allocate the appropriate net earnings to Line 14a for all General Partners on a partnership tax return.
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