asked

We are a new LLC treated as a 50/50 partnership for this year. We are looking to take a distribution of about $15K each, but we only contributed $2500 each to start the business. Will that cause us to each recognize a gain? Should we wait until early next year to take a distribution when the net income will roll into our equity accounts? Additionally, we are planning to file to be an S-Corp for next year. Is there any relief for a late S-Election, and how does this affect our tax situation, including self-employment tax and potential tax strategies for reducing net income?

May 5th, 2023

Sign Up to View Answers

Create an account to view answers and interact with the community!