Withdraw startup money

[amyonghwee]

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.

[Mike9241 · Accepted solution]

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