I think you need to gather every single document you have surrounding this venture and seek some professional help now, in the "doldrums" of the tax season's ebb and flow.
A "pass through" entity means that the entity itself pays no taxes. Instead it "passes through" it's activity to its shareholders/partners so they can report that activity on their own income tax returns. The entity reports this activity on a "Schedule K-1" sent to the shareholder/partners who then transcribe that information into their own income tax returns. Understand that this reporting is generally independent of distributions, ("payouts").
Distributions to shareholders/partners, most of the time, represent returns of capital, reducing the shareholder's/partner's basis. The principal exception here is "Guaranteed payments" which counts as income to the recipient. Guaranteed payments to shareholders/partners are independent of income or losses of the entity. They ensure that a shareholder/partner gets a particular amount for specific services provided or for the use of capital.
The other shareholders/partners do have an incentive to report distributions to a particular shareholder/partner as guaranteed payments as that reduces the net income of the entity and means that the other shareholders/partners report lower income on their own income tax return.
