I'm interested in understanding how the sale price of a company passes through an LLC and ultimately finds its way to the founders.
Let's say i have a startup which is filed as an LLC, taxed as an s-corp, and there are two founders with 50% shares each. assuming its just the two founders that receive the sale price of 500,000.
How does the taxation work? do the founders each have 250,000 taxed as regular income?