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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 14438
Experience:  15years with H & R Block. Divisional leader, Instructor
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I am an Owner of a small LLC in Massachusetts. If I took

Customer Question

I am an Owner of a small LLC in Massachusetts. If I took money out of the "Business" checking account and deposited it into a "Personal" Savings account, will I be taxed on that money any differently than I would if I leave it in the LLC checking account?
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Hello

Taking the money out of the business account would not change your actual tax. A single member LLC is taxed like a sole proprietor (providing you did not file and request to be taxed as an S corp). Your profit from the LLC would be reported on the Schedule C and still flow to your 1040.

The money in the business account is not the determining factor for tax but the Gross income less expenses would be reported and the Net Income is then taxable.

You would not report the amount you moved to personal as an expense either.

If my answer addressed your question please rate below or above (let me know if you have difficulty as I believe the system changed), if you need more information reply below.

Expert:  Robin D. replied 1 year ago.

Please advise if you need more information or rating in a positive way is acceptable.