How to withdraw money from LLC

When you are the owner of the company and its director, you have unlimited access to its financial resources and have the right to withdraw money from the LLC when you wish. But no less important question: how this operation can be reflected in accounting entries so as not to cause objections from the tax authorities, which may be fraught with penalties.

Instruction manual

1

It’s just that you don’t have the right to withdraw money from LLC accounts - any financial transaction should be justified. You can justify the withdrawal of money from the company account as obtaining a loan, issuing a report and paying dividends to the founders. In the first two cases it will be easier to get money, but such an excuse as a loan, initially involves the return of the issued amount after some time. Leaving this money in your use, you will have to pay a tax on personal income.

2

Consider a loan option. It can be obtained by any founder, even one that is not on the staff of the enterprise. There are no restrictions either on the amount of the issued amount, or on the terms for which it is provided. Sign a loan agreement and transfer money to the account or issue it in cash through the cashier. If you are not only the founder, but also the director of the enterprise, then the law does not prohibit signing an agreement on both sides - both as a leasing director and as a borrowing founder. Receiving funds at a minimum or zero percent is considered income, so the company will have to deduct personal income tax from you. He will not need to pay only if the loan was spent on the purchase of new housing.

3

If you are not going to repay the loan, after the expiration of the limitation period (3 years), the accounting department must calculate personal income tax from the material benefit, which is 35%. This loan will be considered your income and, as an individual, you will have to pay another 13% from it, which the accounting department of your company will have to withhold from any of your other income.

4

You can withdraw money from the LLC by filling out the amount withdrawn from the account as funds issued “under the report”. Only an employee of the enterprise can receive them within the limits prescribed in the accounting policy of the company. The documents governing this policy should also set a deadline for the return or report on these funds. When the funds received "under the report" were not returned, the money is considered the income of the person who received them, and he must pay 13% of personal income tax of this amount, and the company must pay insurance premiums on them. In this case, a tax of 35% is not necessary, since there is no material benefit when receiving the amount “under the report”.

5

You can get money also as dividends - the company's profit distributed between the founders. You can get them only if the company break-even. They cannot be paid if the net assets of the enterprise are less than the sum of the authorized and reserve capital. If your company operates profitably, hold a general meeting of the founders and record the decision on the payment of dividends. The frequency with which they can be paid should be spelled out in the charter of the enterprise. From the amount of dividends, the personal income tax rate is only 9%.