What Happens If I Don’t Want To Draw Any Kind Of Money Out Of The LLC?

With a single member LLC the questions here are concerning most of the times how to “pay yourself”/how to get money from the LLC bank account.  What happens if I don’t want to draw any kind of money out of the business ?

– Hugo, South Carolina

Answer

Nothing.

Remember, though, you still have to pay taxes on the LLC’s earnings, even if you don’t withdraw the money.

Because you pay your share of the LLC’s taxes out of your own pocket, the IRS doesn’t care if you leave money in the LLC.

All the above assumes that your LLC is taxed as a sole proprietor or partnership, and you did not elect to be taxed as a corporation.

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