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Updated over 3 years ago on . Most recent reply

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Debbie Collins
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Funding investment LLC with personal Funds

Debbie Collins
Posted

I formed an LLC to purchase a rental house. On the Business Privilege Tax form assets and liabilities are entered. Since these funds were not earned by the newly created LLC, is the money used to fund the purchase considered a liability? Or would it go under the "Sum of partners/members capital accounts"? Would the propertys' equity value be considered part of the LLC net worth?

Can officially structure the funds used to purchase the property as a loan by creating a new LLC to make the loan to the property LLC?

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