The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Wife's LLC Date:  4/2/2012  3:36 PM
Author:  TMFPMarti Number:  115796 of 123001

My wife recently started an LLC and, after building up some cash, she's wondering how she pays herself. She's the only person involved in the LLC. Can she transfer money out of her LLC account to her personal account as payment for work whenever she wants?

Now that we know this is a disregarded entity, this isn't a tax question, it's an accounting question which should be addressed to her accountant, whom any Fool or Foolish spouse would consult before starting up a business. I take it she didn't. More on that anon.

The short answer to the tax question is it doesn't matter what she does about draws. She'll report the business's income and expenses on Schedule C regardless of whet