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.