Hello
I'm curious if there will be any tax implications for me - and if so how can I resolve them - based on my current standing with a business I used to be apart of.
My business partner and I started an LLC in 2016. It was a 50:50 split. Due to more important life situations, I asked to be removed as a partner, giving me business partner 100% ownership. I was removed in 2020.
However, I recently realized that my name (and SSN) is still apart of the business checking account we had together. Within the account we have a 50:50 split. I recently tried to remove myself, but because it's 50:50, the bank has to close the account and open a new one with just my business partner so that I'm fully removed.
With that said, and with some of the new laws from the IRS, should I be concerned from a tax perspective? I don't receive any salary or payment from the company, but the bank account is still used to run the business. Note: this is a side business and it doesn't have a lot of cash flow, ~$1,000 - $2000 worth of withdraws and deposits a month.
I'm looking to get myself removed from this business checking account as soon as possible, but I am concerned about the potential implications for the 2021 tax year.
Any insight / help would be extremely beneficial.
