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Forum|Forum|4 years ago
March 26, 2022
4 replies
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Hi online community,

I need help on this issue. Two members of an LLc that files as corporation closed the business in 2021. They each received a check for around 71000 from the corporation. How is that reported in the personal income tax. I will appreciate everybody's opinion about this. I have a slight idea but I am not convinced. Thank you and have a great evening.

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Level 15

Can't answer that without a lot more information.

C Corporation or S Corporation? What was this $71000 for ? etc etc

athaureaux6Author

Level 7

two members llc that files as a C-Corp. that closed in 2021.

Level 15

Who prepared the final corporate return? How was it treated on that return?

Probably is a dividend/liquidating distribution and 1099-DIVs should have been issued.

The more I know the more I don’t know.

Level 15

What does "closed the business" mean?

Stopped operating some activity, but the C Corp still exists and is in business?

Sold or otherwise disposed of the assets of the business?

Closed the corporation, too?

Simply split the money that was in the bank?

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