Owner's distribution from a single member LLC

Forum|Forum|3 years ago
December 27, 2022
1 reply
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We have a business reported on Schedule C that is a single member LLC. We plan an owner's distribution from the business. Our understanding is that this is not taxable income to us, and does not need to be reported on our tax return. Please confirm.

John M

TurboTax Home & Biz Windows

Best answer by VolvoGirl

Right. You only report income and expenses on Schedule C. Cash you take out is not an expense. A Single Member LLC is a disregarded entity and it's all yours personally. You are just moving cash from one pocket to your other pocket. Unless your s LLC is a S corp. Then you have a problem.

VolvoGirlAnswer

Employee

fredptheo

Do I need to fill out some sort of 1099 to show the funds taken from the single entity LLC, like a 1099-R, or something along those lines?

AliciaP1

No, if you report your single-member LLC activity on Schedule C, you do not report the funds you have taken from the business anywhere. You are considered a disregarded entity and you and your business are one and the same. This means the funds from operating your business, which are reported as the net income on Schedule C, are yours as you earn them.

@fredptheo

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