Question
Does the Ownership Percentage for each partner mean how much income percentage was achieved for the year?
We have 2 members of the LLC partnership. Does the Ownership Percentage for each member mean how much income percentage was achieved for the year? For example, if our combined business income was $24,000 and member 1 made $18,000 and member 2 made $6,000, then would the Ownership Percentage be 78% and 22%? I'm asking because I don't know how the K-1 forms will be created once I finish filing the business taxes.
