Thank you! Super helpful. If the partners are both active participants, they will need to pay self employment taxes on their distributions as well as anything they are paid out as a 1099 from the partnership, correct? Is there a benefit to hiring the partners for contract work, from a tax perspective, vs having all of the work they perform just be done as a partner vs a contractor? If they are hired for some particular work as a 1099, does that help reduce the overall "income of the business" (like you said it reduced all partners shares) in a way that actually changes or improves the tax situation for the partners? Or does it net out the same since the partners are paying self employment tax on everything they "earn" as a partner or contractor, anyway?
