How about whether ordinary income received by LLC members is subject to self-employment tax? There seems to be a lot of controversy surrounding this topic.
I truly hope this information is helpful but please do not rate until you are satisfied. If you want to click on 1 or 2 just click on the continue to work with me button instead. You will then be able to add any other info or respond to what I have posted so far. Rating 3-5 gives me credit and a good rating but you can still converse with me. Guaranteed payments essentially function as a form of salary for partners. This income may be subject to self-employment tax, depending on the terms of payment. Guaranteed payments are considered first-priority distributions and will be paid out even if the partnership is losing money.