If I have 20% ownership in an LLC company that made money last year but I received no dividend or income of any sort, do I owe any taxes?

[Phillip1 · Accepted solution]

Yes, the income from the LLC (unless the LLC has elected to be taxed as a corporation) will be taxable on your return.

Limited Liability Companies with multiple members are treated as partnerships. Partnership income is “passed-through” to the partners returns by their proportionate ownership percentage. Unfortunately, the partners all pay tax on this income even if the partnership doesn’t actually distribute any of the income to the partners.

The income will be reported on Schedule K-1 (Form 1065) after the partnership return is prepared. If the K-1 has not been issued, you may want to wait to file until the partnership return is complete.