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May 18, 2025
Question

Are LLC S corp distributions tax free ?

  • May 18, 2025
  • 1 reply
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Pennsylvania LLC taxed as SCorp - paying myself “reasonable” salary plus distributions. My understanding is these are tax free based on my stock basis of LLC

    1 reply

    May 18, 2025

    as long as the distributions do not exceed your stock basis, they're tax free. one thing to note is that if you have reduced basis debt, there could be issues.