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?
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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?
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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