topic Can I withdraw equity from my single-member LLC without it being income? in Business & farm

Can I withdraw equity from my single-member LLC without it being income?

kjm — Sat, 01 Jun 2019 00:52:40 GMT

Over the past 4 years, I have funded my single member LLC with personal funds. This year, I plan to start withdrawing that equity. Can I do so without it being taxed as income?

Do you file your LLC separately as an 1120 S corp or just...

VolvoGirl — Sat, 01 Jun 2019 00:52:42 GMT

Do you file your LLC separately as an 1120 S corp or just on your 1040 return Sschedule C? If you file schedule C the net profit or loss is your personal money and you can put it in or take it out without reporting it. On schedule C you only report actual income received and actual expenses paid out of pocket. You do not report what you pay yourself or take out.

I file a Schedule C on my 1040 return. Thanks for the qu...

kjm — Sat, 01 Jun 2019 00:52:44 GMT

I file a Schedule C on my 1040 return. Thanks for the quick response.

Is this a different LLC than the one you mentioned here:...

SweetieJean — Sat, 01 Jun 2019 00:52:45 GMT

Is this a different LLC than the one you mentioned here:
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2762850-my-wife-and-i-own-a-llc-that-produces-k-1s-for-each-of-us-50-50-we-are-the-only-shareholders-which-version-of-turbotax-do-i-need-to-use">https://ttlc.intuit.com/questions/2762850-my-wife-and-i-own-a-llc-that-produces-k-1s-for-each-of-us-50-50-we-are-the-only-shareholders-which-version-of-turbotax-do-i-need-to-use</a>

Then you have no separate equity. It's all yours in the...

VolvoGirl — Sat, 01 Jun 2019 00:52:46 GMT

Then you have no separate equity. It's all yours in the first place. Technically you don't even need to keep a separate bank account for the LLC. It's all your personal money. Like it doesn't matter what account or credit card you use to pay an expense to deduct it. You can not deduct your own time or labor or amounts you paid to yourself.

In other words, you have already been taxed on all of its...

TaxGuyBill — Sat, 01 Jun 2019 00:52:48 GMT

In other words, you have already been taxed on all of its profit, so you don't pay tax again when you withdraw it from the bank account.