Saturday, August 13, 2011

Tax advantages - member loan to LLC?

I'm an equal partner in a 2-member LLC. This calendar year my partner has taken about $10,000 more in distributions than I have due to cash flow concerns (my partner is unmarried and has no second income - I'm married and have a second income in the family to pay bills). Are there any tax advantages (for me personally or for the company) to taking the $10k that is my unpaid distribution share prior to the end of the year and then loaning $10k or more back to the company?

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