@jdubndb18 wrote:
I understand the tax side of it (it goes in block 12 of the K-1), just wasn't sure how I should enter in Quickbooks.
There is more to the tax side than what block it reports in.
The IRS watches for a salary, and then distributions, if they see it the other way around that can start them asking questions. The question concerning taking a distribution without a salary is a tax question, the general answer is no do not do that at all. What I do not know is if there is some precedent in tax rules concerning a company not able to support payroll but still allowing a small distribution.
