@Stevehere wrote:
Otherwise why would I reinvest if I have to pay tax twice?
The decision to reinvest is your choice, but you do not pay tax twice on your share of the LLC's net profit.
You pay tax once on your share of the 2021 net profit of $20,000 and once on the 2022 (hypothetical) net profit of $50,000.
Note that the profit will increase your basis in the LLC to the extent it is not distributed to you but, rather, reinvested in the company.
