Nevada Single Member Llc
[mage source="flickr"]Nevada Single Member Llc[/mage]
If a single member LLC registered in Nevada is invested invested in by a US citizen, are these funds taxed?
The funds would be given to the LLC in hopes to gain money or later join with the company. Would this money need to be taxed, and when? If possible supply a link with related information other than the broad link of irs.gov. Thankyou.
From what you have described, you are no longer a single member LLC. As such, the single member may in fact see tax differences. There is an IRS ruling that single member LLC’s are to be treated as proprietorships and otherwise as partnerships. If a single member LLC is paid a fair salary, earnings in excess of that salary ARE NOT subject to Social Security or Medicare taxes. Multiple member LLC’ are fully subject to Social Security and Medicare, regardless of salary.
This question is too vague, however. The only competent person to answer this is either a public accountant or an enrolled agent with all the details in front of them. If you handle capital transactions incorrectly you can blow your LLC status with the IRS. To be an LLC, for tax purposes you must meet certain guidelines and continously do so, otherwise you will be subject to double taxation as a C corporation.