TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Level 5

Solved

Withdraw startup money

1 reply
84 views

I have an LLC taxed as a partnership. There are 2 partners [1] Myself 90% [2] LLC taxed as C-corp 10% in which I am the sole member of this LLC-C Corp. So in reality I am the sole member of these 2 LLCs. During startup, I contributed monies to get it going.

Now that my business is profitable, can I withdraw money to offset this initial contribution, without incurring any tax implications?

Thanks.

Level 15

Expert Reviewed

withdrawal of money will not create a tax problem as long as you and the C-corp have positive tax basis at the end of the year.

generally, this would mean that schedule L on the k-1s shows a positive amount for ending capital. liabilities, if any, can also affect tax basis

Mike9241

Answer

Level 15

Expert Reviewed

withdrawal of money will not create a tax problem as long as you and the C-corp have positive tax basis at the end of the year.

generally, this would mean that schedule L on the k-1s shows a positive amount for ending capital. liabilities, if any, can also affect tax basis

Mike9241