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-   -   LLC Distributions (https://www.askmehelpdesk.com/showthread.php?t=63827)

  • Feb 18, 2007, 05:26 AM
    JLH0818
    LLC Distributions
    Do cash distributions have to be equivalent (per partner percentage) for each LLC partner during the year? If they do and they weren't, should I book a payable for the company?
  • Feb 18, 2007, 05:17 PM
    AtlantaTaxExpert
    As a matter of Generally Accepted Accounting Principles, the distributions should be equivalent to partner percentage.

    If the distributions were NOT made, I do not think you woul book it as a payable to the company.

    However, certain punitive taxes will be assessed if the reasons for failing to make the distributions are not in keeping with IRS regulations.

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