Have a Tax Question? Ask a Tax Expert
Hello. My name is ***** ***** I'll be the Expert assisting you today. I look forward to helping you with your issue. The draw can be allocated pursuant to the operating agreement. If you allocate income and expenses 50/50 and different percentages for distributions then you will have a disproportionate share of distributions and eventually once partner will have a much higher capital account, and one partner may even go negative. You can allocate the draws 50/50 as well to make things even as you are both 50% owners. The draw is a reduction of equity previously earned in the business. Are you interested in having your Florida LLC tax return completed? I can provide this service if you need to have the tax return prepared.
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