Question from a new Member in an existing LLC

[newbie]

Hello: I'm becoming a partner in an existing LLC. This company has multiple divisions of this business and my partnership is limited to one division. I have a couple of questions:

1. I will be employee in a company in which I'm also a partner therefore I will be getting a salary. In addition to that I will be getting profits. Question: Do i get a W2 and K-1 at the end of the year or will I only get K-1.

2. As the business is pretty large and I am a partner in only one division I do not have access to business bank account of the LLC. I will be getting my share lets say every month. How do I handle those funds? What kind of bank account do I open? As I will be showing expenses at the end of the year, what would be the best way to handle this profit and expenses. If I open up a separate personal account and do all the transactions will that be advisable? For expenses I wont be getting a company credit card but I will be showing expenses against the profits i receive.

Please let me know if I'm not clear in my questions and I can provide more explanation.

Thanks for the advice in advance.

[Freelancier]

I think you probably should explain how an existing LLC -- which is a business entity on its own -- would not have its own bank account already. Something seems fishy here.

How many members in the LLC?

Do NOT set up a personal bank account to handle the financial dealings of the LLC. That's how you lose the LLC's protections.

You will get a W-2 as an employee for the salary portion. As for K-1, see here:

LLC Filing as a Corporation or Partnership (http://www.irs.gov/Individuals/Self-Employed/LLC-Filing-as-a-Corporation-or-Partnership)

Keep the LLC's income and expenses separate from your own personal expenses and income at all times.

Consult a local accountant soon, though, because there's a lot of details that you will want to know about that you may not get from a free forum.

[Business Attorney]

You will get a W-2 as an employee for the salary portion.

That statement is NOT correct if the LLC is treated as a partnership for tax purposes, which is how LLCs are automatically treated unless they elect to be treated as a corporation. All income of a member who is treated as a partner is reported on Schedule E of his or her Form 1040.

That statement is correct if the LLC elects to be treated as a corporation (either a C corporation or an S corporation). That assumes, of course, that the amount that is characterized as salary is "reasonable compensation".

Payments to LLC Owners | Tax Help Advisor (http://www.taxhelpadvisor.com/llc/payments-to-llc-owners/)