I've recently created an LLC and have been researching Guaranteed Payments, Member Draws, and EOY Member Distributions and found conflicting data.
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.