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Can I withdraw equity from my single-member LLC without it being income?
Over the past 4 years, I have funded my single member LLC with personal funds. This year, I plan to start withdrawing that equity. Can I do so without it being taxed as income?
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posted
May 31, 2019
5:52 PM
last updated
May 31, 2019
5:52 PM


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Can I withdraw equity from my single-member LLC without it being income?
Then you have no separate equity. It's all yours in the first place. Technically you don't even need to keep a separate bank account for the LLC. It's all your personal money. Like it doesn't matter what account or credit card you use to pay an expense to deduct it. You can not deduct your own time or labor or amounts you paid to yourself.
May 31, 2019
5:52 PM
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Can I withdraw equity from my single-member LLC without it being income?
Do you file your LLC separately as an 1120 S corp or just on your 1040 return Sschedule C? If you file schedule C the net profit or loss is your personal money and you can put it in or take it out without reporting it. On schedule C you only report actual income received and actual expenses paid out of pocket. You do not report what you pay yourself or take out.
May 31, 2019
5:52 PM
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Can I withdraw equity from my single-member LLC without it being income?
I file a Schedule C on my 1040 return. Thanks for the quick response.
May 31, 2019
5:52 PM
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Can I withdraw equity from my single-member LLC without it being income?
Is this a different LLC than the one you mentioned here:
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2762850-my-wife-and-i-own-a-llc-that-produces-k-1s-for-each-of-us-...>
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2762850-my-wife-and-i-own-a-llc-that-produces-k-1s-for-each-of-us-...>
May 31, 2019
5:52 PM
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Can I withdraw equity from my single-member LLC without it being income?
Then you have no separate equity. It's all yours in the first place. Technically you don't even need to keep a separate bank account for the LLC. It's all your personal money. Like it doesn't matter what account or credit card you use to pay an expense to deduct it. You can not deduct your own time or labor or amounts you paid to yourself.
May 31, 2019
5:52 PM
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Can I withdraw equity from my single-member LLC without it being income?
In other words, you have already been taxed on all of its profit, so you don't pay tax again when you withdraw it from the bank account.
May 31, 2019
5:52 PM
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