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.
01311
1 Best answer
Anonymous_
Level 15
Nov 16, 2022 1:41:49 PM
You are taxed on the net income (profit) that the LLC generates.
Your draw is largely irrelevant for income tax purposes.
1 Replies
Anonymous_
Level 15
Nov 16, 2022 1:41:49 PM
You are taxed on the net income (profit) that the LLC generates.
Your draw is largely irrelevant for income tax purposes.