How Do I Distribute Money From a Sole-Member LLC?
Hey everyone, first time poster here!
I'm trying to figure out what is required for me to distribute money to myself from my Sole Member LLC while best preserving my asset protection. I have a Texas Sole Member LLC holding a rental property that I want to pull some money out of in order to pay the rehab costs for a separate rental property held in a Texas 2-member LLC that I'm a member of. A few questions:
1. Do I need to do a K1 to distribute money to myself from my Texas Sole Member LLC?
1a. Does that mean I can only distribute once per year at a set time?
2. What are the tax and asset protection implications of sending money directly from one LLC to another and how would I go about that?
3. How does this process change if I were to restrucutre to a Wyoming LLC that owns both the sole-member LLC and my 50% stake in the 2-member LLC?
Thanks so much!
Kyle M