Newbie just opened LLC and business banking

[Khemaro N.]

Hi All, got a tax question I been pondering... might be a dump dump question. so I opened a business checking and money market account. I put good chunk of my savings into it as start up capital. My question is if I decided to withdraw from it, will I be tax on any of it that i put in?? I know you pay tax on the profits you make but does money that you deposit into your business accounts consider profit?

[Basit Siddiqi]

Money that you put into an LLC is considered a contribution(or possibly a loan if there a loan agreement for the LLC to pay you back).

Money that you take out of an LLC is considered a distribution.
Distributions are not taxable income unless they exceed your basis.

If your money market account is paying you interest; you will be responsible for reporting the interest income.