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How do 2 owners of an LLC get paid?

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Eholic

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Apr 6, 2020
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Hello,

So a business bank account will be opened for a LLC company which has 2 members each owning 50%.

How does financing work in such case?

Can each member have their own separate bank account?

How does each member get paid?

Can there be a case of one being more dominant than the other, or is everything 50/50 in every aspect of LLC banking?

Please address each question above as they are equally important.

Thank you in advance!
 

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Lex DeVille

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So, my partner turned into a real POS. How do I get him out of the business without giving up half of the company? How do I get out of the company without losing my a$$? Should I continue this business or cut my losses? Please address each question above as they are equally important.

Answer to question 1: Pay a professional
Answer to question 2: Pay a professional
Answer to question 3: Pay a professional
Answer to question 4: Pay a professional


You want to be in business you gotta act like a business owner. Search for your answers first. If you don't find the answers to your very specific questions, then search for "who should I talk to about X?" Then pay X to give you answers to your very specific questions that will have very real, legally binding consequences for you whether you act on them based on professional advice, or advice you got from people on a forum.
 

Ronak

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You didn't even clarify the country you're talking about-- a UK LLC is VERY different from US LLC. Agree with @Lex DeVille , hire a professional to help you, it will be worth it.
 

BizyDad

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I am talking about a US LLC.
But you also didn't specify member managed or manager managed.

What does your operating agreement say? Of course members have their own personal bank accounts, but the company gets its own account and depending on facts you failed to provide, one or both members may be signers on the account. Hypothetically, the business could have 2 accounts and each manager uses them separately. Most of the time this probably isn't necessary, and if you think it is, then you probably need a different partner or you need to become a better partner. Financing has little to do with bank account set up so what's your real question there? Members can get paid in one of several ways, please be more specific. And again, your last question can't be answered without knowing more details you haven't provided.

If these questions are really important to you, and stop me if you heard this before... Talk to a pro.

At the very least, do some google searches to explore what the options are, and the legal and tax consequences of each.
 

Ronak

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You get paid by having the LLC write a check- either as salary, or a distribution of profit. Tax consequences depend on your tax home, state of organization, etc, and you'd be liable for tax regardless of whether there are distributions.

Sorry for not addressing each of your equally important questions
 

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Rock. Paper. Scissors.

That is all you need.
 

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