QUESTION
Who gets the income in a limited liability company?
Asked on May 09th, 2013 on Taxation - Delaware
More details to this question:
My wife and I had an LLC in 2012 with earnings of $93,000. During the year, for whatever reason, she wrote all checks on the LLC account to herself and took all the earnings. But then we had other reasons to file Married but Separate on our 2012 taxes. Does she get all the income by default? Is there another method to determine?
3 ANSWERS
An LLC pays out it's revenues as follows: 1)Operating expenses; salaries etc.; 2)Distributions to the LLC members pursuant to their membership interests and the Operating Agreement.
Answered on May 10th, 2013 at 6:53 AM
Taxation Law Attorney serving Glendale, CA
at
Irsfeld, Irsfeld & Younger LLP
Update Your Profile
It sounds like it was community income, half yours and half hers.
Answered on May 10th, 2013 at 6:08 AM
Estate Planning Attorney serving Wilmington, DE
at
Reger Rizzo & Darnall, LLP
Update Your Profile
Operating agreement or if silent, it should be equally.
Answered on May 10th, 2013 at 5:25 AM