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You pay social security and medicare (self employment tax) on the gross earnings of the LLC. Once you have earned the money, you've earned it, taking a draw does not change the amount of your gross earnings. Of course, as a self-employed person, as a deduction, 1/2 of the self employment tax is credited back to you. SEE BELOW:
A limited liability company’s members -- as the owners are called -- cannot be paid a salary from the company when the LLC is taxed as a sole proprietorship or partnership under default rules of the Internal Revenue Service. Instead, the IRS treats the company’s entire profit as income for its members, even if they reserve some of the profit for the company’s working capital.
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In brief, the net profit goes on line 2. The net profit or loss is the gross income minus the allowed deductions. SEE BELOW:
Under IRC Section 1402, self-employment income is generally defined as the gross income derived by an individual from any trade or business carried on by the individual, less deductions allocated to the business.
(a) In general
There shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including—
(1)a reasonable allowance for salaries or other compensation for personal services actually rendered;
(2)traveling expenses (including amounts expended for meals and lodging other than amounts which are lavish or extravagant under the circumstances) while away from home in the pursuit of a trade or business; and
(3)rentals or other payments required to be made as a condition to the continued use or possession, for purposes of the trade or business, of property to which the taxpayer has not taken or is not taking title or in which he has no equity.