Distributions and Guaranteed Payments of multimember llc

Question

How do I account in Transactions for a Distribution I paid to a partner of a multimember llc?  Same question for Guaranteed Payments I pay to myself as the General Partner.  Thank you.

skyomansky · Answer

It is a multi-member LLC and I am only working on 2021 transactions to prepare for my taxes. My LLC paid a distribution to each of the 8 partners (including myself), and it also paid Guaranteed Payments to myself as is stipulated in corporate resolution.  My understanding is the Distributions are treated as business expenses, and the Guaranteed Payments are not treated as business expenses.  I have not set up ownership accounts yet.  I think if I know how to do that, I could figure out how to account for both the distributions and the guaranteed payments.  Thanks for your help and advice.  How do i set up Ownership accounts, and would there be an ownership account for each partner, and finally do those accounts keep track of the Capital Accounts after the entries are made?  Thx again!

Frankx · Answer

Hi @skyomansky,

Can you give us some more information so that we can understand how you are currently using Quicken- Mac with respect to these partnerships?  For example, have you setup each of these two entities (the multimember LLC and the general partnership) in their own Q datafiles?  Or are you accounting for them in your personal datafile?

In general, these transactions would be considered "capital" or "ownership related" type transactions - have you setup ownership accounts for each of the partners?

Please provide additional information and we'll see if we can help you.

Frankx