Discussion:LLC Question

I have read other posts that say the commission should be recorded as a member draw, which doesn't make since to me. Why would you pay someone with money that their already entitled to. The sales commission is paid to show the effort each member is putting into the company. example - If a member chooses not to sell anything, then they make no commissions and get only their split of the profits at years end, however if another member hustles and sells $100,000 they should be awarded extra for their hard work.

I hope this makes since to everyone.

Thank you,

Greg

You are giving commission to your members of LLC on sales to be considered as a business expenses under the head sales commission and issue a form 1099-Misc. to all members to whome you paid commission.

Thanks

You are obviously not a tax or accounting professional. This site is for tax and accounting professionals.

Please seek professional tax advice before proceeding any further. The other posts don't make sense to you because you are not a tax or accounting professional and have zero expertise in this area. You obviously need someone to guide you because you don't have a clue as to what you are doing.

Puru, please fill out a profile.

Tom

My humble apologies for posting on your “Professional” site. I would kindly disagree that only professionals post on this site. I would say at least half of the posts are from business owners such as me. I am not sure why you choose to insult my intelligence, I was just asking a simple question. Take some advice, get off your high horse, you’re not a rocket scientist.

And you are a rocket scientist? Not from the information you posted.

My soapbox is now out and you've earned it with that sophomoric response about being on "your high horse."

Fact: I didn't insult your intelligence for you have no experience in this area. Your question is also not as "simple" as you think.

You might be the best at what you do where you live. But here, you demonstrated a lack of knowledge and therefore before you and your friends make mistakes that cost you money, save yourself some aggravation and hire a tax pro, NOW.

Another thing, this is not a "free site" for tax advice contrary to what people think. It's a "free" resource for professionals to exchange advice. The main page of TaxAlmanac says:

"TaxAlmanac The free online tax research resource and community for tax professionals."

Soapbox away.

It's a good thing Kevin did not answer. He would have gotten out T-Rex in your honor.

Tom

You are right about my response and for that I apologize. What you said really rubbed me the wrong way and I made a hasty response without thinking. I did not realize that this site was for tax professionals only. From reading the posts, most are from business owners looking for advice. I will not post on here again.

Please accept my apologies.

Best regards,

Greg

Apology accepted.

Thank you.

My bark is worse than my bite I assure you. I intend not to insult people's intelligence rather steer them in a direction from making costly mistakes. Crow is correct. A fool and his money are soon parted. I can't tell you the number of times clients have made mistakes because they have read something or they went to a friend's party and they heard "so and so's tax accountant does this or that" and so on and so forth. I wind up bailing them out. Don't be like them.

I spent the first 10 years of my career learning from the best teacher I've ever had in business. The one thing he did was not waste his money. He spent it in the areas where he needed to spend it. So, before you and your friends spend a dime, here's some words of wisdom: instead of spending your resources on fancy cars, office space and the latest "I've got to have this gizmo because it will make me look cool" spend your money on the following:

1) A good attorney;

2) A good accountant/professional tax preparer;

3) A good assistant;

4) re-invest some of the money you make into your business infrastructure (i.e., technology/information systems). In other words, keep it current...; and

5) A call-girl who won't get wire-tapped by the feds (kidding)!

The first 3 are worth more money than anything else I mentioned earlier. The 4th means you care about your business to keep it growing. (The 5th is a joke, of course.)

Best of luck in your new venture.

Tom