Accounting, tax question: Can I distribute profit using K1 to no

Hi:

I formed a single memeber LLC to do some real estate investment like a investment club, I got few friends invested and we got pretty good returns, I used to distribute profit to them at year end and issue 1099 misc (with other income option), but seems they need pay 13% self employee tax although they did not do any actual work, for them, all they did is give me the fund and I invest for them. Can I issue K1 or divident to them?

 

Thanks!

所有跟帖: 

send them a schedule E, and tell them to multiply a %. -sweetptt- 给 sweetptt 发送悄悄话 sweetptt 的博客首页 (0 bytes) () 03/18/2012 postreply 22:03:05

回复:send them a schedule E, and tell them to multiply a %. -seaspearo- 给 seaspearo 发送悄悄话 seaspearo 的博客首页 (443 bytes) () 03/18/2012 postreply 23:48:41

Pay as interest payments -Jy101- 给 Jy101 发送悄悄话 Jy101 的博客首页 (129 bytes) () 03/19/2012 postreply 03:49:55

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