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How should i document my draw from my llc (Florida)? I am

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hi! how should i document...
hi! how should i document my draw from my llc (Florida)? I am 50% owner of a 2-person LLC. Typically we draw $2000/month (or as needed) for our living expenses (siblings, neither are married nor do we have any dependents). We are filing separately - We both get Social Security (yearly: mine is $18,346.80 - other person is $14,878.80)
JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?
Customer: How do we document our LLC draws to ourselves? For example, if our monthly draw is $2,000.00, I get $1,200 and she gets $800.00 - our percentage of split. We are late filing our tax return for our LLC, but want to do it soon, can Turbo Tax help us with our business taxes.
Submitted: 9 months ago.Category: Tax
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4/18/2017
Tax Professional: Brian Michels, Certified Public Accountant (CPA) replied 9 months ago
Brian Michels
Brian Michels, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 162
Experience: Partner at Michels & Hanley CPAs, LLP
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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.

I hope I’ve provided the information you were seeking. If you are happy with my service, your 5-star rating at this time is most welcome. If you need more help, please let me know so l can continue to assist you.

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Brian Michels
Brian Michels, Certified Public Accountant (CPA)
Category: Tax
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