Hello,
I'm under a single-member LLC (pass-through taxation - disregarded entity). I file a form 1040 + Shedule C (Profit or Loss From Business). I want to take money out from a business this year (make distribution to myself from profit).
My question is: Will the distribution be considered as dividends for tax purpose? Do I have to show it on 1040 and pay an additional tax from the dividents? If yes, seems like double taxation, that is a disadvantage of an LLC
Please advice,
Thank you,
Mark.
I'm under a single-member LLC (pass-through taxation - disregarded entity). I file a form 1040 + Shedule C (Profit or Loss From Business). I want to take money out from a business this year (make distribution to myself from profit).
My question is: Will the distribution be considered as dividends for tax purpose? Do I have to show it on 1040 and pay an additional tax from the dividents? If yes, seems like double taxation, that is a disadvantage of an LLC
Please advice,
Thank you,
Mark.