I spoke to the prior CPA.  He said there should have been an agreement.  But the prior owners didn't want one.  That right there = ugh.  But they aren't my clients, so can't do anything about that.  The .05% was left for each of the two outgoing partners, because the 2nd new partner wasn't coming aboard as a partner until 1/1/21.  The 1099-NEC that was mentioned was because they did $3,000 of service work for the LLC during 2021.  Had nothing to do with them being prior owners.  The new owners did mention that they did some work after I had started this thread, so that part makes sense.  No guaranteed  payments to the old partners (which you had already mentioned). He also mentioned it was all goodwill, nothing in assets bought.   So there is nothing for me to issue to the outgoing partners other than the 1099-NEC for the work done.  I know some of this (especially no sale agreement) shouldn't have been done this way.  Thanks for your help with this. I will mark it solved now,