Hi:
I formed a single memeber LLC to do some real estate investment like a investment club, I got few friends invested and we got pretty good returns, I used to distribute profit to them at year end and issue 1099 misc (with other income option), but seems they need pay 13% self employee tax although they did not do any actual work, for them, all they did is give me the fund and I invest for them. Can I issue K1 or divident to them?
Thanks!