Do members need to pay taxes on their share of the company?

Asked 2 years ago

I have decided to join a multi-member limited liability company. There is some confusion on my end on the taxation treatment of this kind of entity and LLC structure. Does this mean that all members will have a percentage of the company based on their investment? Does this mean that they will have to pay taxes on their share of the company?

Brittany McDonald

Brittany McDonald

Monday, September 26, 2022

Yes, as an LLC member, you will be required to pay taxes on your share of the business's profits. Unless you have an operating agreement that states otherwise, you will be responsible for taxes on profits proportionate to your share of investment in the company.

Write an answer...


Please follow our  Community Guidelines

Can't find what you're looking for?

The listings featured on this site are from companies from which this site receives compensation. This influences where, how and in what order such listings appear on this site. Our website contains links to product that might contain affiliate links which may reward a commission when you purchased via our links. Our goal is to compare and review the products and services we write about in the best way to help our users. We might not review and feature every product/service in the market.Our service is free of charge. We might make affiliate commissions when you make a purchase via our links. This may influence if and the order of services and/or products that we review.

TrustedBrandReviews and its affiliates do not provide private investigator services or consumer reports, and are not consumer reporting agencies per the Fair Credit Reporting Act (FCRA). You may not use our site or services or the information provided to make decisions about employment, admission, consumer credit, insurance, tenant screening or any other purpose that would require FCRA compliance.