As a single-member LLC, how do I determine my "income"? On a loan application, for example, do I list the entire gross revenues of the business or only what I pay myself?

I own a single-member LLC, and I am the sole member. I file one tax return that includes my business revenue, any other personal income and my wife's income. When I am applying for a loan and the question of "household income" comes up, what should I report? I assume I should be using the total of my business revenues, personal income and wife's income. Am I correct? I don't formally pay myself a salary, though of course I do take money out of the business for personal use.

2572

Level 15

Jun 6, 2019 5:35:28 AM

Your INCOME on a Sch C is your total income less the applicable expenses NOT just what you take from the business account. The loan officer wants to know what the net income is not just the gross. If you have further questions as the bank.

Level 9

Jun 6, 2019 5:35:30 AM

So you need the total PROFIT from the business, after expenses. That is reported on Line 31 of Schedule C, which flows to Line 12 of Form 1040.

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As a single-member LLC, how do I determine my "income"? On a loan application, for example, do I list the entire gross revenues of the business or only what I pay myself?