In 2017 I created an LLC with two other people (in the United States). This is my first time filing taxes for it, so I just want to make sure I have it right. Our total revenue for 2017 was $20,000. We made a few purchases that should be deductible business expenses (ie computers, office furniture, ect.) which should bring our total taxable income down to about $10,000.

Based on what I am reading, we do not pay corporate taxes because we are an LLC. That money has to be distributed to the partners so they can pay taxes on it individually. However, our plan is to keep this money in our business account, rather than distribute it, so that we can use it for future business expenses (we all still have day jobs so we dont need the money to pay bills and such).

My plan is to declare the deductions on the Form 1065, and then claim that we each "recieved" 33% of the taxable money on the K-1's, so we can pay taxes on it individually. Is this right?