I own and operate a single-member LLC in North Carolina. I have one full-time employee, who is salaried. We sell goods on the internet and have fluctuating sales each month. We did 1.6 million in revenue in 2010, and 210k profit after his pay and costs of goods, etc.
As I'm the only owner of the LLC, I do not give myself a standard pay. I simply take out what I need, when I need it.
I'm beginning to transfer part of my ownership to other parties. For example, I will own 85%, and 3 other people will have 5% each. One of those parties is the current employee.
My questions are as follows:
How and when do I make payments to the other parties? I usually don't know how much the company profited until after doing taxes for the previous year. Will I need to change this practice, or do I make the distributions once the fiscal year is over, then write-it off on the next year's taxes?
Do I need to give myself a salary? If so, do I take this out before calculating distributions?