Paying LLC Taxes

(Missouri)

If you don't make a profit from your LLC, do you pay taxes on the money you put in the business?

Answer

If your LLC has a loss (revenues - expenses = a negative number), then you not only don't have to pay taxes, but you get a deduction for your LLC's losses on your personal tax return.

Money you put into the LLC in the form of a capital contribution or loan (e.g. the startup money you put in the LLC) is not "revenue" for the purposes of the calculation above.