Tax on profit kept as capital (in LLC account)?
by venom999, Window Shopper
- Created: December 8, 2009, 2:36 pm
I own an LLC with a partner. We are growing quickly so virtually all of the profits this year have remained in our LLC's bank account. We haven't paid ourselves much of anything.
I know LLC taxes are paid on personal income taxes, but I also know that you keep business and personal funds separate.
My question is, will we have to pay taxes on these profits, as personal income? We haven't techincally received the profits, but it was still profit.
The money stays in the business bank account however so that we have enough capital to grow the business.
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