Hello,
I am in a LLC partnership with 4 members. Two of the members provided the initial equity in the company. We have received no income. Is it still taxable if I take an owners-draw on some of the initial equity?
Thanks!
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Based on the limited facts:
You need to figure your basis in the partnership.
If you contributed nothing (including not taking on debt) and there has been no revenue, it is difficult to comprehend how (and why) you would be taking a draw in this scenario.
If your basis is $0, then you will recognize gain to the extent of the distribution.
Based on the limited facts:
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