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Level 1
November 16, 2022
Solved

owner salary

  • November 16, 2022
  • 1 reply
  • 24 views

With a sole proprietor LLC, is all the revenue taxed as income or just the portion I pay myself as owner withdrawal each month? I will be in a deficit situation at year end with $70K in revenue but $96K as break even.

    Best answer by Anonymous_

    You are taxed on the net income (profit) that the LLC generates.

     

    Your draw is largely irrelevant for income tax purposes.

    1 reply

    Level 15
    November 16, 2022

    You are taxed on the net income (profit) that the LLC generates.

     

    Your draw is largely irrelevant for income tax purposes.