Hi, all! I’m really hoping someone can explain this to me like I’m five. My BBA in marketing, accounting courses, and hours of research have done very little in the way of helping me wrap my head around this. I promise I have critical thinking skills, this is just so confusing to me.

My brother and I just started a design agency (mostly web development for now) based in the US.

We have a multi-member LLC with equal ownership. We have made a little bit of money and, while we intend to put most of it back into the businesses, we’d like to establish some sort of way to start paying ourselves.

The issue is the payment and tax situation makes absolutely no sense to me. I see everywhere that we each pay through our personal taxes everywhere for whatever the business made but that is so vague. Is there a specific form for reporting it? Even if we don’t take anything out of the business account, do we still report what’s in there on our personal taxes? And always split that 50/50?

Very sorry if this is a dumb question, I just truly cannot wrap my mind around this 😅😅

THANK YOU to anyone who takes the time to read / offers advice