@jimwalter23 wrote:
Our LLC had $9,000 in retained earnings from 2022 to 2023.
Since you apparently have a multi-member LLC (presumably filing a 1065 with K-1s to members), you would be subject to taxation on the ordinary business income reported on your K-1 regardless of whether that income was distributed or not.
At the point when that previously taxed income is distributed, it is not taxable again (provided the member's basis in the LLC is not exceeded).
