Paying taxes on funds after closing an LLC Partnership?

Forum|Forum|1 year ago
March 9, 2025
1 reply
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I am closing and LLC Partnership in which me and my wife were 50/50 members. After we close the business we want to transfer the money from the businesses bank account to our personal account. The money is basically just what we put into the account from our own savings when we opened the business.

When we transfer the money to our own personal account will we have to pay taxes on this? We file jointly.

Thanks!

JotikaT2

It depends.

If your distributions during the course of the partnership exceeded your initial contribution to the business, then the distribution upon closing the partnership could result in capital gains income to you and your wife.

If however, you did not take any distributions during the course of the partnership, then you may not have any income to report.

Please see Partner's Gain or Loss from the IRS for more details.

There is also an article regarding Partnership distributions that goes into greater detail that might be helpful based upon your specific circumstances.

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