I have a question about profit disbursements to members of an LLC. We have it set up so that we will each get a weekly disbursement for particular duties performed and then would like to do a jumbo disbursement at the end of the physical year to each memeber.
I have been doing some reading on profit and loss disbursement and I am a little confused. It says we can do a "Pass-Through" taxation where the profits and losses are passed onto the members.
What I need to know is:
1) Can we withhold income taxes,etc., from each disburement and pay that quarterly? Or, is each member responsible for doing that themselves?
2) The rest of the money in the account that is profit and operating revenue, do we have to pay quarterly on that too or can that wait until the end of the year? If we have to pay out on it quarterly how is that done?
3) How is the profits & losses split up between the two members on their individual taxes? I don't understand how that work.
Thanks in advance!
2006-11-14
15:30:55
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4 answers
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asked by
luvrplant
1
in
United States