Q: I have a florida partnership llc for Etsy which makes 2-3k a year. I never drew a salary. Do I need to pay any taxes?

A: If the partnership has reported income( falls within the Income definition within IRC), it should be reported on the annual 1065 partnership return. Based on the partnership income/expense allocation agreement, that amount will be reported on an individual K1, which will then be reported on your tax return.

You should create a profit and loss statement for each year and then do the proper tax reporting. This will help determine taxability, if any. You may have certain deductions which will absorb much of the income. You may also want to familiarize yourself with what taking a draw is and how and when that could become taxable to you.

A: Yes, even though you don't draw a salary from your Florida partnership LLC for your Etsy business, you still need to file taxes for the business income and expenses.

As a partnership, the LLC itself does not pay taxes. Instead, the LLC's profits and losses "pass through" to the personal tax returns of the LLC owners.

So in your case, you and your husband as the LLC owners would need to:

- File a federal partnership tax return (Form 1065) to report the LLC's annual profits/losses and business activities. This return is for informational purposes.

- The LLC must issue you both a Schedule K-1, showing your share of the LLC profits and losses.

- You then each report your share of the Etsy business profits/losses on your individual Form 1040 personal tax returns. This income gets taxed at your personal income tax rates.

You pay income taxes on the LLC's net profit that passes through to you, not the total gross revenue. So you deduct any valid Etsy business expenses first to determine your final net income amount that's taxable and must be reported. The taxes are due annually when you file your personal tax returns.

Even though the profits stay in the LLC bank account, you still have to report and pay taxes on it.