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    JLH0818's Avatar
    JLH0818 Posts: 3, Reputation: 1
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    #1

    Feb 18, 2007, 05:26 AM
    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?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Feb 18, 2007, 05:17 PM
    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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