Where do I enter money that was paid to LLC members from an Investment account?

[xxxxxxxxxxxxxx]

Two members of an LLC took distributions from the LLC investment account.  Where do I enter this information in TT Business?  Is it "Employee compensation", or maybe a "guaranteed payment"?

[Anonymous_ · Accepted solution]

It is simply a distribution that can be entered in the Partner/Member Information section.

[Mike9241]

members are not employees. the issue with guaranteed payments is they may be subject to self-employment tax.  so unless it was intended that the distributions are compensation for services (guaranteed payments that are taxable and subject to SE tax) or a return on invested capital (also guaranteed payments that are taxable but not subject to SE tax)  the correct category is distributions. which generally aren't taxable unless they reduce the member's basis below zero.