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Updated over 7 years ago on . Most recent reply

User Stats

172
Posts
87
Votes
Alfred Litton
  • Rental Property Investor
  • Valley View, TX
87
Votes |
172
Posts

Paying Taxes with LLC if You Don't Want to Take Profits Out

Alfred Litton
  • Rental Property Investor
  • Valley View, TX
Posted

So my wife and I created an LLC with an EIN and are about to fund a company bank account with our savings. It's a multi-member LLC, and I know we have to pay taxes on the profits (minus allowable deductions for the business), but how are the taxes paid? If we don't want to withdraw any of the profits but, instead, want to use all the profit each year to buy more properties, do we still need to pay taxes on the profits? If so, how do we do that without drawing out money from the company? We want our nest egg to grow! (I should add that we do not borrow money, so it will take a couple of years' worth of profit to save up to buy another property.)

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