Withdrawing funds-LLC

[Jeff S.]

What is a typical schedule when withdrawing funds from an LLC? Would it be monthly, annualy or does it matter? Secondly, what do you title them in your checkbook?

[Account Closed]

Sherry,

Taking money out of the LLC will not trigger any taxes due. LLC's are pass-through entities so all the tax liability flows straight to your personal 1040 return when you file your taxes. The LLC itself pays no income tax.

I'm not sure what Rob is referring to with other sources of income. The LLC profits will be taxed either as passive income (rentals) or ordinary income if you have a full time business or meet some other requirements. Taking money out of the LLC does not affect the income type or when taxes are due regardless of if you have any other types of income. The amount of taxable income is determined when the profit is made, not when money is withdrawn from the business account.