LLC and Guaranteed Payments

Hello,
I've recently created an LLC and have been researching Guaranteed Payments, Member Draws, and EOY Member Distributions and found conflicting data.
1.) Does an multi member LLC defaulting to be taxed as a partnership HAVE to pay a reasonable salary (in the form of a guaranteed payment) to it's active members? I know a member of an LLC taxed as a partnership is not an employee, therefore does not receive a W-2 which confuses when people state a reasonable salary must be payed to the members. The members of our LLC don't want to be paid a salary, we are all satisfied with taking our cut at the end of the year as we all have an equal workload within the company.
2.) If a "reasonable salary" is not MANDATORY and no Guaranteed Payments were made to members, can the only financial transaction from the LLC to the members be the distribution all profits/losses at the end of the fiscal year to avoid the concept of paying estimated tax payments to the IRS. Or do we wind up paying estimated taxes anyways on the member distribution estimations for the next year?
3.) If I am required to pay estimated taxes due the answer to question 2 above, (We formed the LLC in '06 we are still inactive and may well be active all of '07. Will definetely be operational by '08), would i have to start making estimated payments in '08 or '09.
Thanks
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No.
There's no "wages" provision for partners, reasonable or otherwise.

That's fine. In fact, as well as reality, the profits can be drawn down throughout the year.

The IRS will deem the LLC profits are earned ratably over the year. Quarterly estimated tax payments will be expected. It's not going to be based on when the partner pulls the draw from the pearnership, but when the profits are earned by the partnership that matters, and yes, the IRS will look if you push them.

You can skate through 08 if the partners otherwise meet one of the safe-harbor rules on estimates.
08 estimates will be based on 07 tax liabilities for each partner separately.
Since each year falls on it's own, 09 estimates are based on 08 tax liabilities, etc.
--
Paul Thomas, CPA
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