Do I have to pay tax on money in an LLC that wasn't distributed?

0 ⤊

Do I have to pay tax on money in an LLC that wasn't distributed?

A small LLC I have set up had roughly $5000 in revenue in 2006, but I just left all the money in the account and didn't take any of it out. Do I have to pay taxes on it now, or not until I distribute it from the account to myself (probably sometime in 2007) ?

2007-01-27 00:38:07 · 2 answers · asked by DJT 1 in Business & Finance ➔ Taxes ➔ United States

2 answers

its still counts as income to you, check with your local small business services in your town, usually in the city hall building or other city offices, they give free information to small business owners

2007-01-27 00:44:12 · answer #1 · answered by stodgypodgy 3 · 0⤊ 0⤋

Generally, profits are taxable whether you distribute to the owner(s) or not.

2007-01-27 08:54:35 · answer #2 · answered by Wayne Z 7 · 0⤊ 0⤋