LLC Partnership Tax Question, with a nuance...

[Anthony Wick]

Situation:

LLC formed with 3 partners, with one of the partners self managing the rentals. The partner that is managing the rentals will be paid 7-10% of rents each month, much like a hired Property Manager.

I know the LLC will file a K-1 for each partner, but how is the payment of the partner handled for tax purposes? Is the partner acting as a Contractor, and needs a 1099 for this service? Is this earned income for the partner being paid, or still passive income?