Taxes on Held or Reinvested Profits in LLC

[David Flanders]

Hello. Generally speaking, are profits earned within an LLC and either held or reinvested (within the same LLC) subject to taxation? What about where the profits are applied for use in a different LLC. I presume if I were to pay myself a draw, salary, etc., they would be taxed. My goal here is to use profits from one real estate LLC to fund capital improvements, etc. of that same LLC and also eventually use those profits to fund a separate real estate LLC. Each LLC will be a special-purpose entity formed for the purpose of holding multi-family residential property. Obviously I will consult an accountant, but I would like to get some preliminary advice. Thank you!