What if the compensation was not paid on W2? Then how should this be handled, as miscellaneous income?
So would this be taken to Schedule C or just put on SE form?
Thank You!! Even though I pay a monthly fee I have sent you a bonus. I appreciate your quick responses and your explanation in every day language.
I do have another question. On an LLC the owner takes a monthly draw. This should be treated as a guaranteed payment and not put on W2 correct?Personal items paid by the company should be considered a draw and are not taxable but a guaranteed payment (monthly draw) is taxable correct? This then goes to line 10 of the 1065 and line 4 of schedule K1 and is included in income on the personal 1040? The owner has used all of their original investment.