Hello! My name is Scott and I own an LLC with my family (multi-member). I own 50% of the business.

We've been in business for 5 years and we've never paid a distribution to any member.

I have three questions.

1) How much do we pay ourselves? Is it a percentage of income that we made that month in the business, and based on our LLC ownership? (I owns 50%) Or is a fixed rate per month? Are there any tax advantages to one over the other? These distributions aren?t expenses I don?t believe, correct?

2) When do we pay ourselves? Is it only during a certain time of the year, or whenever we feel like it?

4) How do we label it in QuickBooks? Is it a distribution or something else?

Thank you very much for your time answering these questions. I'd like to start getting proof of income to get a mortgage some day.