Taking profit for the first time. Any advice?

My buddy and I started an online business some months ago. We have started to gain traction with the help of Q4. We will be taking out a profit for the first time in the new year.

We have the ability to recoup our initial investment and more. However, it is my assumption that taking all of this profit at once - direct deposit into my personal account - would not be a good idea as it would all have the potential to be taxed. Please correct me if I wrong.

That being said, how do we best distribute the profits? Only take money out when needed? Decide on a montly dividend?

Also, how are you making sure that you have enough to pay income tax? Are you putting x amount ‘away’ each dividend for tax purposes?

Is there anything that I may be overlooking? Do you have a methodical approach for taking profit?

Any tips would be greatly appreciated. I have provided some info about my busines below.

LLC partnership - USA No employees Selling a product - sales can fluctuate 50/50 split

Thanks all

submitted by /u/c__murder
[link] [comments]

from Entrepreneur https://ift.tt/2zRizPD