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Level 4
June 8, 2022
Question

guaranteed payments

  • June 8, 2022
  • 2 replies
  • 34 views

Are all guaranteed payments made to llc members fully deductible as an expense for the LLC? I know for employers withholding taxes, the taxes withheld for social security and medicare (FICA) by the employer are not considered an expense for the business, but rather a liability by the IRS. I read where an LLC is allowed to deduct the full cost of a guaranteed payment as an expense, but I wanted to make sure this is correct.

    2 replies

    Level 15
    June 8, 2022

    Guaranteed payments are deductible as an expense for the LLC. 

    Critter-3
    Level 15
    June 9, 2022

    Guaranteed payments are deductible as an expense for A MULTIMEMBER LLC FILING AS A PARTNERSHIP.